Current Report: Ford Motor

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Ford Motor Co. (F) manufactures automobiles under its Ford and Lincoln brands.

In March 2022, the company announced that it will run its combustion engine business, Ford Blue, and its BEV business, Ford Model e, as separate businesses but still all under Ford Motor.

The company has nearly 13% market share in the United States, about 11% share in the U.K., and under 2% share in China including unconsolidated affiliates.

Sales in the U.S. made up about 66% of 2023 total company revenue.

Ford has about 177,000 employees, including about 59,000 UAW employees, and is based in Dearborn, Michigan.

Three key data points gauge Ford or any dividend-paying firm.

The key three are:

(1) Price

(2) Dividends

(3) Returns

Those three keys also best tell whether any company has made, is making, and will make money.

F Price

Over the past year, Fords share price fell about 13.4% from $12.30 to $10.65 as of Monday’s market close. In the past ten years, the company’s share price has never been less than $4.00 nor higher than $25.20.

If F shares trade in the range of $9.00 to $15.00 this next year, the recent $10.65 share price might rise by $1.35 to reach $12.00 in a year. Of course, F price could also drop about the same $1.35 estimated amount or more.

My $1.35 upside estimate is $1.40 below the median of one-year target estimates from 24 analysts tracking Ford for brokers.

F Dividend

Ford Motor has paid variable quarterly dividends since September 1986 except for the years 2006 to 2012 when they resumed in March.  The most recent $0.15 Q dividend was declared July 13th for shareholders of record July 20th and was paid September 1st. A forward-looking $0.60 annual dividend yields 5.63% at Monday’s closing price.

F Returns

Putting it all together, a $1.95 estimated one-year gross gain per share shows up when adding Ford’s  $0.60 estimated annual dividend to the estimated price upside of $1.35, making that $1.95 gross gain per share.

A little over $1000 buys us 94 shares at the $10.65 share price.

A $10 broker fee (if charged), paid half at purchase and half at sale, might take about $0.105 per share out of the $1.95 annual estimated gross gain to give us a net gain of $1.845 X 94 shares = $173.43 for about a 17.3% estimated net gain for the year.

Furthermore, the $56.30 annual dividend income from $1K invested is over 5.25 times more than Fords $10.65 single share price. By these numbers, Ford may be an ideal dividend dog.

You might choose to pounce on Ford Motor Co. It is a 121-year-old quarterly dividend-paying Michigan-based automobile manufacturer with a 13-year record paying uninterrupted quarterly dividends.

The exact track of Ford’s future price and dividend will entirely be determined by market action.

Remember the true value of any stock is best realized through personal ownership of shares.


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Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a solicitation, ...

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