Sell Alert: Ford Motor (F)

By Jim Pearce • June 30, 2017

TRADE INSTRUCTIONS
Date: June 30, 2017
Name: Ford Motor Company
Symbol: F
Type: Close
Limit: Sell at market              

TRADE RATIONALE

I never like booking a loss, even a small one, but I’m throwing in the towel on Ford after my one-month extension resulted in no net gain. Although I do not see enough near-term upside potential to justifying hanging on to Ford as a trade, I would point out to income investors that its 5.4% dividend yield makes it the 7th highest-yielding stock in the S&P 500 (in case you’re wondering, the six above it are CTL, HCN, IRM, STX, KIM, and our old friend KSS). Priced at only 7 times forward earnings while generating its highest level of net operating cash flow in more than twelve years during the previous quarter, at this point Ford is trading more like a de facto bond than a common stock.

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Tom Getz

Tom Getz

Thanks for the comments, Jim. I’ve held a couple hundred Ford for over a year, not part of the SW portfolio. I think I’ll be a holder for the dividend, rather than book the small loss (actually already covered by past dividends I guess).
Watching and waiting for other opportunities.

Fo

Fo

There must be an interesting pair of glasses that you can wear when you want to see Tesla as a princess and Ford as a hag.

BMOFI48

BMOFI48

Bifocal Rose Colored

Janis Bell

Janis Bell

Who knows when the dividend is due? Usually stocks rise a bit just before it is issued and then drop.

Rick

Rick

The last dividend announcement was April 10 and ex-div was Apr 18, so expect the next announcement to be around Jul 10 and be ex-div mid to late July. And by the way, the dividend was $0.15 per share, so not a lot to wait for.

Dramatic License

Dramatic License

For those still in, Ford with a decent little move this morning.

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