12-26-2013, 10:25 AM
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
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