Hi everyone,
I’m still working on putting together my September overview,
which will detail all stock purchases, dividends received, Thrift Savings Plan
( TSP ) purchases, rental income and other passive income. However, I wanted to update everyone with a
new purchase I made today, as the stock market begins to present buying
opportunities. I planned on adding to my
current positions until I reach a suitable amount in each holding, but I’ve been
eyeing this stock for awhile, so an exception was made. With it taking a beating this week, I felt
the price was reasonable, so I chose to execute a small position. I’m talking about Ford Motor Company ( F
). As a lifetime Ford owner, I love
their products obviously and believe in the company, especially after not
taking a bailout and effectively screwing shareholders as did other car
manufacturers. I was a previous
shareholder in Ford, but sold my position in 2013 for a hefty 90% profit and
basically wasted the profits (i.e. before I wised up to DGI).
Ford is a company that has had its ups and downs, and after
a recent bad outlook the stock is trading near 52 week lows. I
scooped up 51 shares of Ford Motor Co. at $14.50 for a total cost basis of
$739.50, as I had a freebie with the brokerage.
Ford Motor Co. pays a quarterly dividend of .125 per share, or $0.50
annually. My entry point of $14.50 puts
my Yield on Cost (YOC) at approximately 3.45%, so not a bad initial yield
point. The purchase of F added $25.50 to
my estimated annual dividend. I plan on
dripping my dividends to purchase more shares and make Ford a long term holding
in my dividend growth portfolio, as long as it continues to pay dividends.
Short Story
Ford Motor Co. ( F
): I invested $739.50 at a purchase price of $14.50 for 51 shares. This adds $25.50 to annual dividends, which
are now at $130.94. This is my 14th
position in my portfolio.
How do you feel
about Ford? Good buy? I really wanted to add a REIT to my portfolio
to take advantage of a higher yield, possibly a monthly payout, but chose to go
with F at this price point and decent YOC. Thanks for
reading.
I havent looked at F in a long time. Although the recent pullback sort of made it pop up on my radar. A lot of my friends are die-hard F fans....and one thing ive noticed with them is that they stick to it - theres a lot of brand loyalty. Thanks for sharing. I will have to take another look at it.
ReplyDeletecheers
Thanks R2R. I'm hoping the investment pays off, as I can't see the stock staying at this level for the long term. In addition , as long as they keep paying a healthy dividend, I'll hold on to the shares. I'll probably keep it as a relatively small holding of my portfolio over the long term. Thanks for checking out the post!
DeleteActually owned F a few years ago, but sold. I think the company is decent, but it doesn't meet my criteria for dividend growth. And having family who've worked for the Big 3, I have no real desire to invest in a car company again. But that's just personal opinion; strictly speaking, I think F will be a good investment for you!
ReplyDeleteThanks DD. I agree, it's not the prototypical DGI stock, as the company has short term issues that may ultimately affect the dividend. I'll probably keep F as a small holding and will ditch if the dividend gets cut.
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