Ford was at a bottom at $11.45 in the last week. It has leaped up a nice 15% since it achieved this new 3 year low. This increase was caused by a 20% increase in sales in February which included increases in passenger cars, utilities, trucks, and overall sales in 2016. This is the first big stock increase we have seen in over a year. It should see some downward action soon as people try to break even and close up stock positions before the tax date
For the long-term investor, you get a nice 4% dividend while you wait for this stock to get back to proper stock valuation. Remember, many people still are holding onto their cars approaching or over 10 years old. Most people would change cars in 3 to 4 years but the economic downturn has caused a damper on the consumer spending. This should change in the new few years and I expect for the patient investor that they will be rewarded greatly by Ford’s stock price and dividend.
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