There Goes the Dividend -- Now What for Investors?
The Motley Fool
by newsfeedback@fool.com (Daniel Miller)February 25, 2026
AI-Generated Deep Dive Summary
The article explores the impact of dividends on investor wealth-building and raises questions about whether a potential Stellantis turnaround is worth considering without its dividend. It highlights the varying stock performances of Detroit automakers over the past three years: General Motors (GM) saw nearly double its stock price, Ford Motor Company (F) posted a modest 11% gain, while Stellantis (STLA) shed more than half its value. Investors are left wondering if buying into Stellantis is a good move, especially given recent announcements about electric vehicle (EV) pullbacks and the financial pain they’ve caused.
The piece emphasizes how costly it can be when automakers make wrong decisions or face slower-than-expected market developments, particularly in the U.S. EV industry. While dividends are often seen as a reliable way to build wealth, this article suggests that investors need to carefully evaluate whether companies like Stellantis are truly turnaround projects worth their investment. The context of the automotive industry’s shift toward EVs adds another layer of complexity, as automakers navigate expensive transitions and uncertain market responses.
For readers interested in finance and investing, this article underscores the importance of considering not just dividends but also broader company strategies and external factors like technological shifts and market timing. It serves as a cautionary tale about relying solely on dividends while ignoring other critical aspects of a company’s performance and prospects. Investors are encouraged to weigh the risks and challenges associated with dividend-dependent investments, especially in industries undergoing significant transformation.
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Originally published on The Motley Fool on 2/25/2026