Key Takeaways
- Genuine Parts cut its 2026 earnings guidance on Oct. 20, while Ford raised the low end of its outlook on Oct. 28 and held its quarterly dividend at 15 cents.
- Ford yields 4.8% and Genuine Parts 3.5%, but Ford’s regular dividend hasn’t grown since mid-2022, while Genuine Parts raised its payout 5.4% a year from 2020 to 2025.
- Ford’s dividend used 35% of its free cash flow over the past year, against 76% at Genuine Parts, which paid out more than its free cash flow in 2025.
- Genuine Parts plans to split into two public companies in early 2027, and its Investor Days on Dec. 8-9 are the next thing to watch.
Genuine Parts (GPC) grew third-quarter sales 4.2% on Oct. 20, then lowered its 2026 earnings outlook.
Eight days later, Ford (F) went the other way. It raised the low end of its full-year adjusted EBIT guidance and declared another 15-cent quarterly dividend.
So which is the better dividend stock today?
| Metric | Ford (F) | Genuine Parts (GPC) |
|---|---|---|
| Forward dividend yield | 4.8% | 3.5% |
| Annual dividend | $0.60 | $4.25 |
| Dividend growth, fiscal 2020-2025 | Flat since fiscal 2023 | 5.4% a year |
| Cash dividend payout ratio (TTM) | 35% | 76% |
| Net debt / EBITDA (LTM) | 16x | 2.3x |
| Interest coverage (LTM) | 1.2x | 8.2x |
| Forward P/E | 7.1x | 16x |
Source: TIKR and StockAnalysis, Nov. 5, 2026. Cash dividend payout ratio is dividends paid divided by free cash flow, over the twelve months to Sept. 30, 2026.
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Ford’s check is flat, and well-covered
Ford has paid 15 cents a share every quarter since mid-2022. Its supplemental dividends, $0.18 a share in February 2024 and $0.15 in February 2025, aren’t counted in the 4.8% yield.
That check is well-covered. Ford’s cash dividend payout ratio was 36% in fiscal 2023 and fiscal 2024, then fell to 19% in fiscal 2025, as free cash flow rose from $6.74 billion to $12.5 billion:
Third-quarter adjusted free cash flow rose to $4.7 billion from $4.3 billion a year earlier, even as revenue slipped 2% to $49.5 billion. Ford guides to $6 billion to $7 billion of adjusted free cash flow for 2026, more than double the $2.39 billion it paid in dividends in fiscal 2025.
Growth is the weak spot. Ford said on its third-quarter call that it expects 2027 earnings roughly in line with 2026’s, and its Model e unit is set to lose about $4 billion this year.
Genuine Parts’ raises have outrun its cash
Where Ford’s dividend has sat still, Genuine Parts’ keeps climbing. Its dividend per share grew 5.4% a year from fiscal 2020 to fiscal 2025, from $3.16 to $4.12.
The cash hasn’t kept up. Free cash flow fell from $1.87 billion in fiscal 2020 to $421 million in fiscal 2025, while dividends paid rose every year to $564 million:
That put its cash dividend payout ratio at an uncovered 134% in fiscal 2025, up from 44% in fiscal 2022. It’s back to a tight 76% over the twelve months to Sept. 30, 2026. Genuine Parts guides to $550 million to $700 million of free cash flow for 2026, but the low end of that range wouldn’t cover the $578 million it paid in dividends over the past year.
Its two businesses are heading different ways. Motion, the industrial arm, grew third-quarter sales 6.1%, while comparable retail sales in North America Automotive fell about 3%. On Oct. 20, the company cut its full-year adjusted EPS guidance to $7.50 to $7.75, from a range that topped out at $8.00, citing $30 million to $40 million of extra second-half costs tied to the Iran conflict.
Genuine Parts also plans to separate into two public companies, Global Automotive (NAPA) and Global Industrial (Motion), in the first quarter of 2027. It hasn’t said what each company will pay.
So which dividend wins?
Ford is the better dividend stock today: it pays the bigger check, and its free cash flow covers it with room to spare.
$10,000 in Ford pays $480 a year now, a 4.8% yield on your cash, against $350 from Genuine Parts. At Genuine Parts’ 5.4% rate from 2020 to 2025, its check would pass Ford’s in about six years, around 2032. At its 3.0% raise in fiscal 2025, it takes about 11 years, and in year 10 Ford would still pay about $480 against Genuine Parts’ $457.
You also pay less for Ford’s income. It trades at 7.1x forward earnings, below its five-year average of 7.8x, against 16x for Genuine Parts:
That doesn’t mean Genuine Parts’ dividend is in trouble. It has raised its payout year after year, Motion is growing, and management expects free cash flow to recover from fiscal 2025’s low. Ford’s check may also never grow. It’s just that, right now, Ford’s dividend is bigger and better covered, and Genuine Parts’ raises need cash it hasn’t been producing.
Of course, that picture could change after Genuine Parts’ Investor Days on Dec. 8 and 9 in New York, where management plans to lay out the earnings power of each company it’s creating.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any of the stocks mentioned. Thank you for reading, and happy investing!
