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Ok, so I know that Ford generally is on nobody's list of dividend growth stocks. It is a cyclical company that stopped its dividend during the financial crisis, and only reinstated in 2012.
But I bought a few shares in 2012 right when they did start the dividend back up and all I can say is so far so good. 20 cents per share in 2012, 40 cents per share in 2013, and just announced a 25% raise to 50 cents per share in 2014 (from 10 cents quarterly to 12.5 cents quarterly).
Go Ford!
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Obviously I am biased and love Ford as a company.(although not as an investment) Do you think they will be ok when Mulally retires soon? He's really turned the company around.
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F has been on my list and I agree that it looks attractive. I just haven't been able to find room to add it so far and the cyclical nature has kept me away as well.
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I hold a significant amount of Ford. I bought in 2009, and got out with about a 75% gain in 2011. Then I bought back after a sell off, and have been holding and adding since. I'm enjoying the dividend increases!
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We have F and as soon as GM announced their dividend at close to 3% we bought GM.
I must be correct because some "growth" analysts aren't happy 
There are people who use up their entire lives making money so they can enjoy the lives they have entirely used up
Frederick Buechner
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01-19-2014, 11:07 AM
(This post was last modified: 01-19-2014, 11:09 AM by Robandcindy2.)
(01-18-2014, 10:23 PM)Robandcindy2 Wrote: We have F and as soon as GM announced their dividend at close to 3% we bought GM.
I must be correct because some "growth" analysts aren't happy
Then I read this:
Future of GM Dividend
"Buy American".....unless it's a 2000 Jetta TDI (195,000 miles, 46-50 mpg...still running strong)
There are people who use up their entire lives making money so they can enjoy the lives they have entirely used up
Frederick Buechner
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As I think I've said elsewhere, I'm not sure that I'd buy F at today's prices. Maybe. But at $9.00 per share, real earnings, and the new Fusion just released, it felt like a pretty safe buy!
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Wow -- Ford is up almost 5 percent today.
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Nice boost from Ford today!
DEARBORN, Mich.--(BUSINESS WIRE)--
The Board of Directors of Ford Motor Company declared a first quarter dividend of $0.15 per share on the company’s outstanding Class B and common stock.
This dividend represents a 20 percent increase from quarterly dividends paid in 2014. This increase is consistent with the company’s capital strategy of financing its plan, further strengthening its balance sheet and providing attractive returns to shareholders.
The first quarter dividend is payable on March 2, 2015 to shareholders of record at the close of business on Jan. 30, 2015.
(01-19-2014, 07:40 PM)Kerim Wrote: As I think I've said elsewhere, I'm not sure that I'd buy F at today's prices. Maybe. But at $9.00 per share, real earnings, and the new Fusion just released, it felt like a pretty safe buy!
I don't think we ever saw $9.00 in 2014 and I doubt we will see it in 2015. What price did you get in at?
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01-08-2015, 03:30 PM
(This post was last modified: 01-08-2015, 03:32 PM by Kerim.)
(01-08-2015, 11:37 AM)cbroncos Wrote: (01-19-2014, 07:40 PM)Kerim Wrote: As I think I've said elsewhere, I'm not sure that I'd buy F at today's prices. Maybe. But at $9.00 per share, real earnings, and the new Fusion just released, it felt like a pretty safe buy!
I don't think we ever saw $9.00 in 2014 and I doubt we will see it in 2015. What price did you get in at?
I bought my shares for $8.99 each on July 24, 2012, and have never (yet) regretted the purchase.
I just updated my spreadsheet on F however, and am not sure I'd touch it at $15 and above. I've said before that with a cyclical stock like F, I need a much larger margin of safety than I'd need with, say, a consumer staples company. Yesterday's raise was very nice, and with it, Ford sports a very attractive initial yield of almost 3.9 percent. But earnings are languishing and as a result the payout ratio has already climbed to about 50 percent in the four years since the dividend was re-initiated.
2015 earnings projections are pretty good, but with an automaker, those estimates need to be taken with an especially giant-sized grain of salt. And even if they are realized, the dividend growth rate is going to slow way down starting next year, I imagine.
So, while I still like Ford a ton as a company, and will happily continue to hold my shares, I'd need to see some combination of much better earnings or a much better valuation before I'd consider buying more shares.
Just my 2 cents!
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01-08-2015, 05:05 PM
(This post was last modified: 01-08-2015, 05:05 PM by Dividend Watcher.)
Kerim, when you first brought up Ford, I thought you were a little crazy.  I swore I'd never gamble with the likes of automakers again since the Chrysler bailout in the late-70s, early-80s.
Now look at me ... I've been holding DE for a year or two content in the knowledge it could take a big drop in the next several years as the ag market goes through another downcycle and just collect the dividends.
I hope they can at least maintain the dividend for you. Sounds like you've got a decent margin of safety in the price bar another catastrophe.
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“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan
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