Ford Motor Company, known by the ticker symbol F, is a Large Cap auto manufacturer in the consumer cyclical business sector. This is my first report on Ford for my Viital stock portfolio. I have not reported on F for the past year since it suspended its dividend.
Ford Motor Co. manufactures automobiles under its Ford and Lincoln brands.
The company has about 14% market share in the United States and about 7% share in Europe. Sales in North America and Europe made up 69% and 19.5% of 2020 auto revenue, respectively. The company was founded in 1903 and is based in Dearborn, Michigan.
Ford has about 186,000 employees, including about 58,000 UAW employees. It operates through three segments: Automotive, Mobility, and Ford Credit.
The Automotive segment sells Ford and Lincoln vehicles, service parts, and accessories through distributors and dealers, as well as through dealerships to commercial fleet customers, daily rental car companies, and governments.
The Mobility segment designs and builds mobility services; and provides self-driving systems development services.
The Ford Credit segment primarily engages in vehicle-related financing and leasing activities to and through automotive dealers.
Three key data points gauge any dividend equity or fund such as Ford Motor Co: 1) Price (2) Dividends (3) Returns.
Those three basic keys best tell whether any company has made, is making, and will make money.
F Price
Ford's price per share was $19.39 as of Friday's market close. One year ago its price was $8.74. So, F's share price rose over 120% in the past year.
If Ford's stock trades in the range of $10.00 to $22.00 this next year, its recent $19.39 share price could rise by $0.61 to reach $20.00 by November 22, 2022. My estimate is $0.30 under the average of annual F price increases over the past ten years
F Dividends
Ford's most recently announced quarterly dividend of $0.10 will pay out December 1st to shareholders of record November 18th. The compounded annual payout of $0.40 yields 2.08% per yesterday's $19.39 closing price.
Ford Motor Co had paid quarterly dividends increasing generally annually since March, 2012 until March, 2020. That was 8 years of increasing payouts.
F Returns
Adding the $0.40 annual estimated F forward-looking dividend to my $0.61 price upside estimate shows a $1.01 potential gross gain, per share, to be reduced by any costs to trade F shares.
At yesterday's $19.39 price per share, a little over $1000 would buy 52 shares.
A $10 broker fee (if charged) would be paid half at purchase and half at sale and might cost us $0.19 per share.
Subtract that maybe $0.19 brokerage cost from my estimated $1.01 gross gain per share results in a net gain of $0.82 X 52 shares = $42.64 for a 4.26% net gain on a $1,008.28 investment.
So it is that Ford Motor Co (F) shows a possible 4.25% net gain including a 2.06% forward estimated dividend yield.
Over the next year at this time a $1000 investment in Ford Motor Co (F) could generate $20.00 in cash dividends alone. Note that a single share of F bought at yesterday's closing price was $19.39! Thus, Ford Motor Co (F) share price is $0.61 less than the dividend income from $1000.00 invested. Thus, according to my dogcatcher ideal, now is a prime time to pickup Ford shares. The estimated next-year dividend from $1k invested is $0.61 over the single share price. Consider yourself alerted. It's a sign! Now may be a time to buy Ford shares.
All of the estimates above are speculation based on the past history of Ford Motor Co (F). Only time and money invested in this stock will determine its market value.
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