Dividend Pause Reshapes Auto Stock Playbook

Stellantis’ $25.9 billion one‑time charges tied to its EV push and warranty costs have led to a suspension of the 2026 dividend, underscoring how aggressive EV bets can strain cash flow; GM and Ford have weathered the period with differing stock paths. Moody’s downgraded Stellantis to Baa3, signaling higher borrowing costs and a longer, tougher turnaround even as the company projects about $7 billion in 2026 operating profit (up from $3 billion in 2025) and a hoped-for U.S. sales rebound. With the dividend in question, investors may reconsider Stellantis and look at stronger automakers like Ferrari or GM as potential alternatives until profitability and cash flow stabilize.