Ford: Is It Worth Staying Long For The Dividend?

If you are chasing yield and are a long-term investor, Ford might be a decent company to own. The Dealer Invoice Price has hidden mark up such as holdback and other fees built into the price. Learn what your car's worth before stepping foot in a dealership! True Deal Cost - The actual price Ford dealers pay for their new vehicles. X Plan pricing information is not available on all Ford websites.

Ask "Ask" is the quoted ask, or the lowest price an investor will accept to sell a stock. Practically speaking, this is the quoted offer at which an investor can buy shares of stock; also called the offer price.

SMART TECH ON THE ROAD AND OFF

The biggest risk with this is that there is no downside protection. This is one reason why I chose Ford to utilize option investing. I feel the risk is very low that the company will see a significant price drop.

I feel that most of the downside risk is already priced into the stock. That being said, I ran a hypothetical scenario of what could happen. That would be roughly a 23 percent drop over the time period.

The stock has not seen this low of a price since July of So I feel for the stock to reach that level is unlikely. After taking into account the dividends received and income from the sale of puts and calls, you would be left with a loss of 2. This is not a significant risk on the downside. While your money could have easily made money elsewhere, the opportunity cost is probably the biggest loss here. So you would have to make sure that you have sufficient funds for this transaction.

If you feel the stock is in a free fall, then you could quickly sell and take your 2. Through the options you can lower your entry point to a place where you would be willing to buy the stock.

At that price, your dividend yield on the stock would be 6. By utilizing long-term options, particularly with Ford, you can increase your income and return. It gives an investor a good opportunity to boost the return with a relatively small amount of risk.

Ford is prime for the opportunity as it is not a volatile stock, it has a strong dividend, the price is right, and it is not overvalued. While this is a great option to use with Ford, the idea can be applied to many different stocks.

There are some options with options to earn a healthy return on your investment in Ford even if the price is stuck in neutral. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it other than from Seeking Alpha. I have no business relationship with any company whose stock is mentioned in this article. Writing call and put options on Ford can increase the income and return on investment.

The characteristics of Ford make it a prime candidate to write options. Volatility or lack thereof Dividend Price Valuation The stock is not highly volatile. Show Hide Sales Tax. Touch To Start Your Build. Apply for Ford Credit Save time and convenient See what financing terms are within your budget Use this info when you go to the dealer. A dealer representative will contact you to confirm your pre-order.

Add a question or special request. Get an Internet Price. Shortly, you will receive a phone call from a dedicated Black Label representative from In addition to providing you with the specific vehicle information you requested, this person will help ensure a seamless buying experience.

If you would like to speak with someone sooner, please do not hesitate to contact: Flexible Morning Afternoon Evening. However, given the overall industry weakness, the high levels of consumer debt discussed below as well as the breakdown in the technical patterns, it appears one would want to be prudent and wait to invest in Ford.

For many people, Ford is a sacred cow - the dividend is all that matters. For example, if you were a buy and hold Ford investor starting in , you would have nothing but the dividend to show for the holding period.

Yes, one could reinvest dividends. Yes, it's a good yield. However, I think there are better uses of your money for risk and return rather than Ford. Frankly, GM might be the better stock to own at this time if you feel like you want exposure to the automotive industry. I still believe that US auto sales could have a repeat of Consumers have taken on too much debt - over-extended - to buy the best and shiny now rather than waiting to purchase when they could afford something.

Simply put - Americans have too much debt. As regular readers of my work will see, again and again, freedom - true financial freedom - does not come from having debt.

The message is and always will be: When times are good, pay down debt and increase your savings. Overall, household debt is now Simply put, we, collectively, are living beyond our means.

This very well could mean that our debt levels are too high and it will delay people from buying new cars. This doesn't bode well for the car industry that needs a constant hit of new sales. This will also have a longer-term drag on companies like U. Steel X even though it might see a bounce due to a Fibonacci retracement.

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Sep 09,  · Updated options chain for Ford Motor Co.- including F option chains with call and put prices, viewable by date. Among Ford models, F-Series truck sales increased % to 81, vehicles, Escape SUV sales rose % to 24, vehicles and Fusion sales tumbled % to 11, vehicles. the stock has shed % year to date, while rival General Motors Co. shares have lost % and the S&P has gained %. Strike prices are fixed in the contract. For call options, the strike price is where the shares can be bought (up to the expiration date), while for put options the strike price is the price at which shares can be sold.