4 Automakers That Pay A Strong Dividend: How To Make Money Off These Stocks During A Bear Market

Cars shape the way we live our lives. For most, it is a way to get from one place to another, but others see it as a symbol of status or a collector's item. Since the Model T, cars have been integral to American culture with the pros outweighing the cons.  

For investors, one main benefit of owning an automaker’s stock is that many corporations have long-established free cash flow. When investing, a person will most likely also reap the benefits of the company’s dividend. 

This article will highlight some of the legacy automakers that pay investors dividends.

Ford Motor Company F

Price: $15.38

52-Week Range: $10.61 to $25.87 

YTD Performance: –29.26%

Dividend Yield: 2.64%

Honda Motor Co Ltd HMC

Price: $25.53

52-Week Range: $23.21 to $33.42

YTD Performance: -11.42%

Dividend Yield: 5.41%

Toyota Motor Corp TM

Price: $157

52-Week Range: $152.14 to $213.74

YTD Performance: –15.71%

Dividend Yield:  2.70%

Volkswagen AG VWAGY

Price: $19.92

52-Week Range: $16.80 to $36.74

YTD Performance: – 33.78%

Dividend Yield: 3.98%

While the YTD performance for all of these companies is negative so far, investors can still make income on long-term investments through a dividend. 

Dividend payouts could provide income for traders and also make many of the large cap stocks fall into the value category instead of growth, which could mean predictable earnings and dividend increases.

Photo: Courtesy of Noah Negishi via Unsplash