Daily Stock Analysis: Ford Motor Co.

By Fredrik Arnold
Monday, August 15, 2022 2:54 AM EDT

Ford Motor Co with the stock ticker (F), is a Large-cap automobile manufacturer operating, as I said, in the consumer cyclical/defensive business sector. This is the first of five consumer candidates competing for the forty-sixth slot in the Viital folio. It is my second ever report on Ford for my Viital portfolio . However, I have also reported on Ford for one or more  of my previous portfolios.

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Ford Motor Co. manufactures automobiles under its Ford and Lincoln brands.

In March 2022 the company announced that it will run its combustion engine business, Ford Blue, and its BEV business, Ford Model e, as separate businesses but still all under Ford Motor Company.

The company has about 12.5% market share in the United States, about 6.5% share in Europe, and about 2.4% share in China including unconsolidated affiliates.

Ford expects market share increases as inventory improves coming out of the chip shortage.

Sales in the U.S. made up about 64% of 2021 total company revenue.

The company has a strategic collaboration with ARB Corporation Limited to develop a suite of aftermarket products for the new Ford Bronco.

Ford Motor Company was incorporated in 1903 and is based in Dearborn, Michigan.

Three key data points gauge any dividend equity or fund such as Ford Motor Company:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.

F Price

Ford’s price per share was $16.18 as of yesterday's market close.  One year ago it’s price was $13.95. Thus, F share price increased $2.33 or about 16.7% in the past year.

If Ford’s stock trades in the range of $10.00 to $25.00 this next year, its recent $16.18 share price might rise by $0.82 to reach $27.00 by next year. My $0.82 upside estimate is $0.02 below the median of one-year price targets from 20 analysts tracking Ford for brokers.

F Dividends

Ford’s most recently declared quarterly dividend of $0.10 was paid June 1st, to shareholders on record as of April 25th.

Since March 1, 2012,

Ford has paid quarterly  variable dividends.  The current forward looking annual dividend of $0.40 projects an annual yield of 2.47% as of Friday’s $16.18 share price.

F Returns

Adding the $0.40 Ford annual dividend to my estimated one-year price upside estimate of $0.82 shows a $1.22 potential gross gain, per share, to be reduced by any costs to trade Ford shares.

At yesterday's $16.18 closing price, a little over $1000 would buy 62 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at sale and might cost us $0.16 per share.

Subtract that maybe $0.16 brokerage cost from my estimated $1.22 gross gain estimate per share results in a net gain of $1.06 X 62

shares = $65.72, for a 6.57% net gain including a 2.47% forward looking annual dividend yield.

Over the next year our $1K investment in Ford shares should generate $24.70 in cash dividends. Of course, a single share of Ford stock bought at yesterday's $16.18 price is over $8.50 LESS than the dividend income from our $1000.00 investment.

So, by my dogcatcher ideal, this prime time to pick up Ford Motor Company shares based on their forward looking dividends for the year 2022. The forecast annual dividend from $1K invested is $8.52 greater than yesterday’s single share price. Consider yourself alerted. It's a sign. Now IS the time.

All of the estimates above are speculation based on the past history of Ford Motor Company. Only time and money invested in this stock will determine its market value.

More By This Author:

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Daily Stock Analysis: MiX Telematics
Daily Stock Analysis: Intel Corp

Disclaimer:  This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a ...

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