fordmantpw Posted January 21, 2016 Share Posted January 21, 2016 I gather you’re unfamiliar with investing. Of course stock price is important, but don’t discount dividends. Ford issues dividends regularly, which comes from their profits. Ford pays me a dividend every three months no matter if their stock price is trading high or low. And believe me, they can add up. Each year I’m amazed how much money I make on dividends. As of right now, without the special $0.25 special dividend, Ford is paying 5% dividend. That's not chump change for a relatively safe stock like F. Any increase in stock prices is a bonus on top of that dividend. Quote Link to comment Share on other sites More sharing options...
RichardJensen Posted January 21, 2016 Share Posted January 21, 2016 As of right now, without the special $0.25 special dividend, Ford is paying 5% dividend. That's not chump change for a relatively safe stock like F. Any increase in stock prices is a bonus on top of that dividend. Not to mention, your effective dividend yield is the dollar cost average of your share purchases; which means if you bought a big pile in the 2005-2010 time period, your effective dividend yield is a lot higher than 5%. Quote Link to comment Share on other sites More sharing options...
fordmantpw Posted January 21, 2016 Share Posted January 21, 2016 Not to mention, your effective dividend yield is the dollar cost average of your share purchases; which means if you bought a big pile in the 2005-2010 time period, your effective dividend yield is a lot higher than 5%. Good point. Checking my statement today (I bought a few more shares of F while it was down), my average cost is around $6/share. That means I'm earning about 10% on my F stock, regardless of stock price. In that regard, Ford maintaining profitability and continuing to fork over that dividend is much more important than what speculators cause the stock price to do. Quote Link to comment Share on other sites More sharing options...
banker55 Posted January 21, 2016 Share Posted January 21, 2016 Good point. Checking my statement today (I bought a few more shares of F while it was down), my average cost is around $6/share. That means I'm earning about 10% on my F stock, regardless of stock price. In that regard, Ford maintaining profitability and continuing to fork over that dividend is much more important than what speculators cause the stock price to do. I commend you on your short to medium term investment acumen , but lets look at a longer view. If you had bought 3000 Ford shares at the turn of the last century it would have cost around $100000. Today those shares would be worth $33333. Your dividend income would be $1800. Between the middle of 2006 and the start of 2012 Ford stock paid zero dividends. The same investment in GM or Chrysler would have netted you a zero balance. Quote Link to comment Share on other sites More sharing options...
fordmantpw Posted January 21, 2016 Share Posted January 21, 2016 I commend you on your short to medium term investment acumen , but lets look at a longer view. If you had bought 3000 Ford shares at the turn of the last century it would have cost around $100000. Today those shares would be worth $33333. Your dividend income would be $1800. Between the middle of 2006 and the start of 2012 Ford stock paid zero dividends. The same investment in GM or Chrysler would have netted you a zero balance. I didn't buy them at the turn of the century. I'm well ahead of what I have invested as my average cost for F stock is just around $6. Where would I have been with those GM shares that I bought around the turn of the century? Didn't GM go bankrupt and all their shares became worthless? That 100k would be worth 0 right now had I invested it all in GM. I'm not sure what happened with the Chrysler shares, so I can't comment on those. Are there better stocks than Ford? Sure there are, but I don't have the time to research every stock out there. I pick a few that I feel I am comfortable with and that pay decent dividends, do some research, watch them, and decide if/when to buy/sell. You win some, you lose some, but all-in-all, since I started buying my own stocks, F has outperformed all of the others as far as price. F is a bit behind others in % dividends received, though. Of course, hindsight is 20/20, and if I could tell the future in the stock market, I would be on an island somewhere, sipping Margarita's, not having this discussion. 2 Quote Link to comment Share on other sites More sharing options...
jpd80 Posted January 22, 2016 Author Share Posted January 22, 2016 After seeing "The Big Short", I wonder how many serious players use short selling to still make money when stocks are falling. I have a hunch that a lot of profit taking like this goes unseen when many analysts go to work dissecting company performance versus stock price.... it all seems like such a big game played on confidence and bluff... Quote Link to comment Share on other sites More sharing options...
banker55 Posted January 22, 2016 Share Posted January 22, 2016 I didn't buy them at the turn of the century. I'm well ahead of what I have invested as my average cost for F stock is just around $6. Where would I have been with those GM shares that I bought around the turn of the century? Didn't GM go bankrupt and all their shares became worthless? That 100k would be worth 0 right now had I invested it all in GM. I'm not sure what happened with the Chrysler shares, so I can't comment on those. Are there better stocks than Ford? Sure there are, but I don't have the time to research every stock out there. I pick a few that I feel I am comfortable with and that pay decent dividends, do some research, watch them, and decide if/when to buy/sell. You win some, you lose some, but all-in-all, since I started buying my own stocks, F has outperformed all of the others as far as price. F is a bit behind others in % dividends received, though. Of course, hindsight is 20/20, and if I could tell the future in the stock market, I would be on an island somewhere, sipping Margarita's, not having this discussion. I started accumulating F in 1977 as part of my pay package.For every $10 dollars invested, Ford gave you $6.00 in shares . I still own a bunch. I also received Citi, Hertz and Visteon from the spinoffs. I sold them. I am looking at snow out my home office window,so no island for me either. Being retired,I can and do spend a lot of time with investments.....I just looked at the snow again. Quote Link to comment Share on other sites More sharing options...
fordmantpw Posted January 22, 2016 Share Posted January 22, 2016 I started accumulating F in 1977 as part of my pay package.For every $10 dollars invested, Ford gave you $6.00 in shares . I still own a bunch. I also received Citi, Hertz and Visteon from the spinoffs. I sold them. I am looking at snow out my home office window,so no island for me either. Being retired,I can and do spend a lot of time with investments.....I just looked at the snow again. I happen to like snow, we just don't get enough here. Quote Link to comment Share on other sites More sharing options...
akirby Posted January 22, 2016 Share Posted January 22, 2016 I happen to like snow, we just don't get enough here. Do you also enjoy fiberglass underwear? Quote Link to comment Share on other sites More sharing options...
fordmantpw Posted January 22, 2016 Share Posted January 22, 2016 Do you also enjoy fiberglass underwear? Hmmm, never tried, but sounds uncomfortable as heck. Quote Link to comment Share on other sites More sharing options...
akirby Posted January 22, 2016 Share Posted January 22, 2016 Hmmm, never tried, but sounds uncomfortable as heck. My point exactly! Quote Link to comment Share on other sites More sharing options...
YT90SC Posted January 22, 2016 Share Posted January 22, 2016 What GREAT news! Maybe they will stop raping their service time labor standards.... oh wait. They won't. Quote Link to comment Share on other sites More sharing options...
jpd80 Posted January 23, 2016 Author Share Posted January 23, 2016 (edited) So I take it that ford had a big fourth quarter, especially in North America where F150 inventory and supply to dealers finally got back to normal levels. You get the feeling that a lot of the added profit comes from those increased F Series sales, and If Ford can get a big roll on with F Series and push for 900K sales then the fortunes of less performing product will matter less until it gets those products changed out in 2018. Maximizing Fusion, Escape and Explorer sales is probably going to come down to building out inventory well before Spring and then trading on it all the way through Summer. We can see that happening with Jan 1 inventory levels: Fusion 60,900 Escape 69,800 Explorer 34,100 Edge 31,200 Mustang 33,700 Transit 32,900 T/C 18,000 Focus 53,200 (135 days) incentives in Q1? Fiesta 18,500 (146 days) incentives in Q1? Edited January 23, 2016 by jpd80 Quote Link to comment Share on other sites More sharing options...
fuzzymoomoo Posted January 23, 2016 Share Posted January 23, 2016 ^fyi Fiesta inventory has been like that for about a year now Quote Link to comment Share on other sites More sharing options...
jpd80 Posted January 24, 2016 Author Share Posted January 24, 2016 Pretty much, all Ford can do is control those numbers as much as possible and wait for spring sales to kick in. Quote Link to comment Share on other sites More sharing options...
probowler Posted January 24, 2016 Share Posted January 24, 2016 (edited) Do you also enjoy fiberglass underwear? Hmmm, never tried, but sounds uncomfortable as heck. My point exactly! I think like most things in life, it's pretty okay once you get over the itching. Edited January 24, 2016 by probowler Quote Link to comment Share on other sites More sharing options...
jpd80 Posted January 24, 2016 Author Share Posted January 24, 2016 I don't think I could eve get used to living in places where it snows, too many years of soft living in warmer climates where the only ice seen is in drinks by the pool. Quote Link to comment Share on other sites More sharing options...
4d4evr-1 Posted January 24, 2016 Share Posted January 24, 2016 I don't think I could eve get used to living in places where it snows, too many years of soft living in warmer climates where the only ice seen is in drinks by the pool. with the continued effects if climate change it appears that predicting snow on past results will be less accurate... Quote Link to comment Share on other sites More sharing options...
jpd80 Posted January 24, 2016 Author Share Posted January 24, 2016 with the continued effects if climate change it appears that predicting snow on past results will be less accurate... The weather patterns in Northern and Southern hemispheres seem to be coming more extreme as moderate weather patterns are replaced by either unexpected droughts followed by severe storms. Quote Link to comment Share on other sites More sharing options...
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