A portfolio of stocks I've been building since September 3 is named Volio Folio. It will eventually hold 52 dividend dogs. Volio is the fifth portfolio I've built (at a one dividend dog per-week pace) since 2014. Five portfolios = V for Volio!
Today I'm reviewing the second of five consumer cyclical stocks striving to be picked to join the Volio folio. This could be the ninth pick for Volio!
That consumer cyclical sector includes twenty-eight industries ranging from Advertising Agencies to Apparel, Autos, Broadcasting, Department Stores, Gambling, Leisure, Lodging, Packaging, Personal Services, Shoes, Restaurants, Rubber, Plastics, Textiles, and all such consumer aimed enterprises.
My subject today is a large-cap auto manufacturer, Ford Motor Co. Their trading ticker symbol is F. I previously reported on Ford on November 27, 2018, as a candidate for the Ivy portfolio,
Ford Motor Co. manufactures automobiles under its Ford and Lincoln brands. It also builds trucks.
The company has about 14.3% market share in the United States and about 7% share in Europe. Sales in North America and Europe made up 65% and 21% of 2018 auto revenue, respectively.
Ford has about 199,000 employees, including 55,400 UAW employees, and is based in Dearborn, Michigan.
I use three key data points to gauge dividend-paying equities or funds like
Ford Motor Co:
(1) Price
(2) Dividends
(3) Returns
Besides those three, several other keys will finally unlock an equity or fund in which to invest, or not.
Those three basic keys, however, best tell whether a company has made, is making, and will make money.
F Price
Ford's price per share closed at $8.61 yesterday. A year ago its price was $8.98. In the past year, its price fell by $0.37 or 4.12%.
Assuming Ford's stock trades in the range of $7.50 to $10.50 this next year, it's recent $8.61 price could rise by $1.39 and get to $10.00 by late-October, 2020, assuming some upward price momentum emerges.
F Dividends
Ford's latest declared quarterly dividend was $0.15, payable December 2nd.
That $0.15 Q dividend equates to $0.60 annually and yields 6.97% based on yesterday's $8.61 closing price.
F Gains?
Adding the $0.60 annual estimated dividend to my $1.39 estimate of Ford's price upside shows a $1.99 potential gross gain, per share, which will be reduced by costs to trade these shares.
Say we put a little under $1,000.00 today into Ford Motor Co at its recent $8.61 price, we'd buy 116 shares of F.
A $10 broker fee paid half at purchase and half at sale could cost us about $0.09 per share.
Subtract that $0.09 brokerage cost from the estimated $1.99 gross estimated gain leaves a net gain of $1.90 X 116 shares = $220.40 or a 22.05% net gain on a $998.76 investment.
Therefore, Ford Motor Co, whose trading ticker symbol is F shows a possible 22.05% net gain including a 6.97% dividend yield. It could be more, it could be less.
The above speculation is based on past year performance. The actual results remain to be seen to learn if Ford Motor Co is worth your time and money.
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