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I've got about 200 shares of F I'm holding long in my DG portfolio. Not sure it is a "forever" stock, but I am optimistic in the medium term that they'll grow the dividend nicely and the share price should follow. I'm not really interested in more long shares, but as I've said, looking to play around with the options and think F is a good leap candidate.
If you don't have any yet, could be a good non-core holding. Though I am less sure about today's prices. It was more of a no-brainer back at $9 per share with a P/E of 4.
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I was looking at Ford and I'm interested in some insights from you all.
Ford of course cuts it's dividend in 2007, but prior to that, hadn't raised it for a spell (Morningstar only goes back 10 years so...). The payout ratio is a nice 14%, but I'm not sure they have much incentive to raise their dividend, especially if they are struggling in Europe, etc. It seems to be this is a play on the market value of the stock going up; which indeed it may, but that's a whole different ball-game than we usually play here;-)
Are we assuming any company with that low a payout ratio will raised dividends to attack buyers to the stock, is that the play? I think the company has a future and will be around for many more years... but I guess this, at least to me, seems like a gamble.
Ronn
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Thanks- always helpful to see how others are thinking through their strategies. I still feel new to this in many ways.
Ronn