The Investment Road to Freedom

March 5th, 2012 at 6:54 pm

New Buy – Ford

So today I made my first purchase since January when I added Ford Motor Company (F) to my portfolio as I acquired 24 shares at 12.50 each for a total of $308.83. This buy is part of my taxable account which I fund after my 401K and IRA which explains why it is not a high figure purchase. My 24 shares will provide $4.80 in dividends a year. I had been following Ford for a while and like another of my investments, Bank of America, times have been tough. Looking at the stock it has a beta of 2.98 making it a volatile stock, more volatile than the market. It seems highly unlikely that the stock will return to it’s highs of the 90’s – but that is not why I brought the stock. Under CEO Alan Mullaly I feel Ford has someone who is slowly molding the company in a direction to once again make it a super power, that is a super power with good fundamentals. If it can climb to the $15 to $18 mark and at the same time earn some dividends, I will be a content man.

One of my favorite blogs, Dividend Monk, did an excellent article on Ford which can be seen here highlighting the pros and cons of adding the American car giant to one’s portfolio. I had already made up my mind before reading that post that I would more than likely own Ford and it served to add fuel to my fire. There are risks with this company but there is a saying in soccer – if you don’t shoot you wont score! I think the same applies here.

 

 

 

 

 

 

 

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