FordBuyer Posted October 11, 2021 Share Posted October 11, 2021 18 minutes ago, jasonj80 said: Except that car doesn't actually exist at that price. (Yes, dealers lie in ads) And as Ford has said....consumers don't want sedans...they want SUVs and pickups. Recently saw a woman trying to cram a basketful of Sam's Club items into a Mustang covertible....it was grim to watch. I love little hatchbacks like the Fiesta, but sedans do seem archaic now. Quote Link to comment Share on other sites More sharing options...
FordBuyer Posted October 27, 2021 Share Posted October 27, 2021 Ford reinstated its dividend.... .10 payable in December. So I guess .40/year. Blow out earnings this quarter and improved guidance going forward. 3 Quote Link to comment Share on other sites More sharing options...
Fordowner Posted October 28, 2021 Share Posted October 28, 2021 1 hour ago, FordBuyer said: Ford reinstated its dividend.... .10 payable in December. So I guess .40/year. Blow out earnings this quarter and improved guidance going forward. Great news! I've had my IRA sitting in a lot of cash and the interest earned is nothing. Only stock I've held for a while is Ford. One wonders when or if the chip constraint goes away how much pent up demand there is. Anyway, at 40 cents a year, Ford at $16, which is historically high, is paying a 2.5% Dividend. 1 Quote Link to comment Share on other sites More sharing options...
FordBuyer Posted October 28, 2021 Share Posted October 28, 2021 13 hours ago, Fordowner said: Great news! I've had my IRA sitting in a lot of cash and the interest earned is nothing. Only stock I've held for a while is Ford. One wonders when or if the chip constraint goes away how much pent up demand there is. Anyway, at 40 cents a year, Ford at $16, which is historically high, is paying a 2.5% Dividend. Ford just slammed thru $17 price point and is up over 8% in last day or so. Nice pop. Analyst on CNBC is giving an $80/share target price. Don't know about that, but $20 price target certainly is in sight short term. I would say keep the dividend yield under 3% and let the stock price fly. Stocks with high dividend yield don't do well in this economy. 3 Quote Link to comment Share on other sites More sharing options...
rperez817 Posted October 28, 2021 Share Posted October 28, 2021 1 hour ago, FordBuyer said: Stocks with high dividend yield don't do well in this economy. Yes sir FordBuyer. Paying dividends to shareholders says that the issuing company doesn't have sufficient high growth opportunities and projects that are expected to increase returns in the future. Basically, they are shunting that portion of their earnings to shareholders rather than reinvesting it into growth. Ford is in a transition period right now, and is still focused on getting fit rather than becoming a growth company. So Ford's decision to reinstate dividend makes sense. Long term, as Ford does become fit, it may cancel dividend on F if it finds enough high growth opportunities and projects, particularly in the areas of electric vehicles and components, autonomous cars, and mobility services including software. Quote Link to comment Share on other sites More sharing options...
akirby Posted October 28, 2021 Share Posted October 28, 2021 21 minutes ago, rperez817 said: Yes sir FordBuyer. Paying dividends to shareholders says that the issuing company doesn't have sufficient high growth opportunities and projects that are expected to increase returns in the future. Basically, they are shunting that portion of their earnings to shareholders rather than reinvesting it into growth.. That is not always true. Ford chose to fund its future investments by redirecting existing resources and cancelling less profitable projects and vehicles. There is a limit to how much a company can invest without overextending fixed overhead and debt. Ford obviously believes it can do both. 2 Quote Link to comment Share on other sites More sharing options...
FordBuyer Posted October 28, 2021 Share Posted October 28, 2021 16 minutes ago, rperez817 said: Yes sir FordBuyer. Paying dividends to shareholders says that the issuing company doesn't have sufficient high growth opportunities and projects that are expected to increase returns in the future. Basically, they are shunting that portion of their earnings to shareholders rather than reinvesting it into growth. Ford is in a transition period right now, and is still focused on getting fit rather than becoming a growth company. So Ford's decision to reinstate dividend makes sense. Long term, as Ford does become fit, it may cancel dividend on F if it finds enough high growth opportunities and projects, particularly in the areas of electric vehicles and components, autonomous cars, and mobility services including software. Before Covid, Ford was doing one time special dividends instead of raising them every year. Good way to keep the yield low. The Ford heirs love their dividends so I expect Ford to always keep a dividend when profitable and offer one time special dividends every now and then instead of raising it every year. Now with this big shift to electrics and huge, new battery plants, I don't see dividend higher than .10/quarter. This shift will take many years and cost many billions. Ford is still in the early stages and I hope this is the last dividend increase for many years. A special, one time dividend every now and then...fine, but no yearly increase. 1 Quote Link to comment Share on other sites More sharing options...
GearheadGrrrl Posted October 28, 2021 Share Posted October 28, 2021 I noticed Schwab moved Ford from a D to a C rating on their A through F scale. I agree- Ford still has massive problems with huge capital needs to retool and parts shortages, but by taking a lead on electric cars and actually delivering them Ford may have a bright future. 1 Quote Link to comment Share on other sites More sharing options...
FordBuyer Posted October 28, 2021 Share Posted October 28, 2021 11 minutes ago, GearheadGrrrl said: I noticed Schwab moved Ford from a D to a C rating on their A through F scale. I agree- Ford still has massive problems with huge capital needs to retool and parts shortages, but by taking a lead on electric cars and actually delivering them Ford may have a bright future. Farley in conference call stated that chip shortage for Ford is much improved. New shipments of vehicles coming to Ford dealerships everyday now. And great customer response to Bronco Sport, Bronco, Maverick, Lightning, Escape hybrid and plugin, and Mach E. Big reason why earnings almost doubled estimates and even beat on revenue. Now let's hope Ford can get a similar response from consumers over any new product being shown over next year or so. L.A. Auto Show is almost here and will be interesting I hope. Lincoln certainly needs a 5th vehicle. Quote Link to comment Share on other sites More sharing options...
rperez817 Posted October 28, 2021 Share Posted October 28, 2021 16 minutes ago, FordBuyer said: Now let's hope Ford can get a similar response from consumers over any new product being shown over next year or so. L.A. Auto Show is almost here and will be interesting I hope. Lincoln certainly needs a 5th vehicle. As Jim Hackett's "design thinking" spreads to more and more new Ford products, we can be optimistic that upcoming Ford products will get a positive response from consumers and professional reviewers. Quote Link to comment Share on other sites More sharing options...
rperez817 Posted October 28, 2021 Share Posted October 28, 2021 34 minutes ago, GearheadGrrrl said: Ford still has massive problems with huge capital needs to retool and parts shortages, but by taking a lead on electric cars and actually delivering them Ford may have a bright future. Yes indeed GearheadGrrrl, you are correct on all counts. I'm also confident that Ford can successfully transition to a future automotive industry characterized by 100% electric vehicles. However, automotive industry analyst Alexander Potter from Piper Sandler said yesterday that he thinks BEV sales from incumbent automakers are "underperforming" and mentioned Mustang Mach-E in that context. Forget the Hertz Deal. Buy Tesla Stock Because Drivers Don't Want Other EVs. | Barron's (barrons.com) " Every [Tesla] bear thesis includes commentary regarding the likely impact of future competition," writes Potter. But the Volkswagen (VOW.Germany) ID.4 and Ford Motor (F) Mustang Mach E haven’t derailed Tesla sales. “These vehicles have not matched Tesla’s post-launch performance, even though Tesla’s pricing is often higher than peers.” Quote Link to comment Share on other sites More sharing options...
rperez817 Posted October 28, 2021 Share Posted October 28, 2021 43 minutes ago, akirby said: Ford chose to fund its future investments by redirecting existing resources and cancelling less profitable projects and vehicles. There is a limit to how much a company can invest without overextending fixed overhead and debt. Ford obviously believes it can do both. Good points akirby sir. Ford has done both in the past. Do you think Ford can do both in the future amid the ongoing revolution in the automotive industry, or will Ford have to diminish or suspend dividend payments on F eventually so they can invest in high growth projects instead? Quote Link to comment Share on other sites More sharing options...
GearheadGrrrl Posted October 28, 2021 Share Posted October 28, 2021 One of the problems in marketing to environmentalists is that they tend to iconify products and want to punish companies that supposedly harmed the environment years ago. Thus they'll spend a six figure sum to very visibly cover their roof with solar panels when wind energy is a better investment. And despite Tesla's history of broken promises and poor after sales back up, they'll pay more for a Tesla instead of a Bolt because they want to punish GM for scrapping their experimental electric cars decades ago. Quote Link to comment Share on other sites More sharing options...
rperez817 Posted October 28, 2021 Share Posted October 28, 2021 19 minutes ago, GearheadGrrrl said: they'll pay more for a Tesla instead of a Bolt because they want to punish GM for scrapping their experimental electric cars decades ago. For all incumbent automakers, that kind of legacy "baggage" presents a huge challenge as they enter the new world of sustainable transportation. In Ford's case, fortunately CEO Jim Farley is a good businessman with a visionary mindset. He should be able to come up with strategies that make future Ford BEV and related mobility services appealing to a broad base of consumers, including those that were disappointed with Ford's poor efforts involving BEV in the past. 1 Quote Link to comment Share on other sites More sharing options...
Gurgeh Posted October 28, 2021 Share Posted October 28, 2021 55 minutes ago, FordBuyer said: Farley in conference call stated that chip shortage for Ford is much improved. New shipments of vehicles coming to Ford dealerships everyday now. And great customer response to Bronco Sport, Bronco, Maverick, Lightning, Escape hybrid and plugin, and Mach E. Big reason why earnings almost doubled estimates and even beat on revenue. Now let's hope Ford can get a similar response from consumers over any new product being shown over next year or so. L.A. Auto Show is almost here and will be interesting I hope. Lincoln certainly needs a 5th vehicle. Yes, indeed. Lincoln is pretty stuck right now, coming off of several years of great new product introductions. Notice that in the 3rd quarter the only Lincoln vehicle that saw sales growth was the Nautilus, the vehicle that Lincoln has decided to kill (to be replaced with an all-electric to be announced sometime or other in the future). Quote Link to comment Share on other sites More sharing options...
FordBuyer Posted October 28, 2021 Share Posted October 28, 2021 16 minutes ago, GearheadGrrrl said: One of the problems in marketing to environmentalists is that they tend to iconify products and want to punish companies that supposedly harmed the environment years ago. Thus they'll spend a six figure sum to very visibly cover their roof with solar panels when wind energy is a better investment. And despite Tesla's history of broken promises and poor after sales back up, they'll pay more for a Tesla instead of a Bolt because they want to punish GM for scrapping their experimental electric cars decades ago. Will be interesting to see how successful Lucid is going forward with a better electric vehicle than Model S. Also after about 6 weeks, Rivian launch is going poorly from 1 vehicle/day to 1.7 vehicles/day. Conversely, just read a report that Ford sold 30,000 Mach Es in Europe and I assume 20,000 here. Don't know what the production numbers are for 2022...hopefully more and better than Rivian 1.7/day. Looks like hard part of electric vehicle startups like Rivian will be the launch period. I remember Musk sleeping on factory floor during initial Tesla launch period. Took Tesla years to get up to speed. Ford has that down and launch speed of Lightening will be quick given Ford's century of experience. Quote Link to comment Share on other sites More sharing options...
rmc523 Posted October 28, 2021 Share Posted October 28, 2021 1 hour ago, Gurgeh said: Yes, indeed. Lincoln is pretty stuck right now, coming off of several years of great new product introductions. Notice that in the 3rd quarter the only Lincoln vehicle that saw sales growth was the Nautilus, the vehicle that Lincoln has decided to kill (to be replaced with an all-electric to be announced sometime or other in the future). Reading too much into any nameplate's sales number the last 2 years is a mistake. I believe Nautilus is the only product Lincoln had any/much inventory of, thus it's naturally going to sell well if that's all dealers have. Quote Link to comment Share on other sites More sharing options...
akirby Posted October 28, 2021 Share Posted October 28, 2021 1 hour ago, rperez817 said: Good points akirby sir. Ford has done both in the past. Do you think Ford can do both in the future amid the ongoing revolution in the automotive industry, or will Ford have to diminish or suspend dividend payments on F eventually so they can invest in high growth projects instead? I think they’re already investing in the right long term strategy and I don’t see a dividend impacting that. If anything it would impact less important projects. 1 Quote Link to comment Share on other sites More sharing options...
akirby Posted October 28, 2021 Share Posted October 28, 2021 Tesla has 2 major advantages today - people who hate traditional automakers and dealers and super fast public chargers. Both will change over time as traditional mfrs ramp up BEV production. Quote Link to comment Share on other sites More sharing options...
mustang84isu Posted October 29, 2021 Share Posted October 29, 2021 8 hours ago, GearheadGrrrl said: One of the problems in marketing to environmentalists is that they tend to iconify products and want to punish companies that supposedly harmed the environment years ago. Thus they'll spend a six figure sum to very visibly cover their roof with solar panels when wind energy is a better investment. And despite Tesla's history of broken promises and poor after sales back up, they'll pay more for a Tesla instead of a Bolt because they want to punish GM for scrapping their experimental electric cars decades ago. Extreme fanboys will shun GM, but I'm going to wager that the vast majority of the car buying public has little to no memory of the GM EV1. What incumbent automakers need to do is make owning an EV as easy as possible, as reliable as possible, while providing good value to the consumer. That is how you win the mass market, and it is what Ford, GM, VW, and others are historically good at. I do agree though that the evangelists get tiring. Nothing says hypocrite more than Elon Musk constantly flying back and forth between Fremont and Austin in his Gulfstream jet and blowing up rockets over ecologically sensitive areas at the southern tip of Texas. 1 Quote Link to comment Share on other sites More sharing options...
Fordowner Posted November 2, 2021 Share Posted November 2, 2021 (edited) On 10/28/2021 at 11:53 AM, GearheadGrrrl said: One of the problems in marketing to environmentalists is that they tend to iconify products and want to punish companies that supposedly harmed the environment years ago. Thus they'll spend a six figure sum to very visibly cover their roof with solar panels when wind energy is a better investment. And despite Tesla's history of broken promises and poor after sales back up, they'll pay more for a Tesla instead of a Bolt because they want to punish GM for scrapping their experimental electric cars decades ago. I wonder how big a market these extreme environmentalists are. The market is the larger population that support efficiency and reasonable government fuel standards and subsidization to assure the move from coal and oil to electricity powered by solar and wind. Actually the market is almost everyone, now with the technological advancements making electric cars more competitive. Advancement in battery technology means electric panels are becoming more competitive for homes, so while in the past they were rare it is now becoming more frequent - at least in Atlanta. This will further increase the demand for electric cars. Bottom line, I now think Ford was smart to throw the Mustang name on an electric car and comeout with an Electric F 150 - There is no better way to associate Ford with electric vehciles than to associate their top nameplates with electric. The Mustang seems to have hit the mark and if the F-150 Lightning hits the mark, Ford will be well positioned for the mass market's adoption of electric cars. Edited November 2, 2021 by Fordowner 3 Quote Link to comment Share on other sites More sharing options...
Gurgeh Posted November 3, 2021 Share Posted November 3, 2021 Oh, no, the dividend is plunging! It is almost down to 2% today... Quote Link to comment Share on other sites More sharing options...
FordBuyer Posted November 4, 2021 Share Posted November 4, 2021 20 hours ago, Gurgeh said: Oh, no, the dividend is plunging! It is almost down to 2% today... Big news today about Ford redeeming $5 billion in bonds that it issued when Covid shut its plant garnering up to 9% in interest. This move will significantly lower its debt costs. I know back in 2011 or so Ford redeemed some Ford Credit paper I had that paid me 9% interest. GM bondholders got pennies while Ford paid me more than what I initially invested. 1 1 Quote Link to comment Share on other sites More sharing options...
mustang84isu Posted November 4, 2021 Share Posted November 4, 2021 I was hoping Ford would hit $20 by the end of the year, but I think it will be there within the next week. This has been a refreshing last few months after years of disappointment. I've held Ford shares since 2008 and considered selling a large chunk several times over the last several years but always held on. I would so be kicking myself today if I had done so. 3 Quote Link to comment Share on other sites More sharing options...
mustang84isu Posted November 8, 2021 Share Posted November 8, 2021 Ford hit $20/share today, first time it has been above $20 since August of 2001--20 years ago. 4 Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.