Saturday, September 2, 2017

Driving Income with Ford

For over 100 years, Ford (NYSE:F) has been innovating in the automotive world. In its early days, the company revolutionized production through the efficiency of assembly lines. Now, there is strong competition both domestically and internationally. To stay ahead Ford must embrace new technologies.

While some considered it a mistake, the switch to aluminum in Ford’s F-150 shows that the company is forward thinking. GM continues to mock them for this in advertisements, but aluminum allows Ford to reduce the vehicle’s weight and therefore improve fuel economy. Pretty soon, GM and other competitors will find that they are lagging behind. In addition, Ford is starting to get serious with electric cars and autonomous vehicles. They are not leading the industry in these areas at the moment, but they are pushing strongly ahead.

Over the last few years, the market has not been kind to Ford. Share prices climbed above $17 in 2013 and 2014, but slowly declined to below $11 last month. They are on the way back up, but the stock still seems undervalued. This presents an opportunity to pick up a great company for a great price, and collect a 5%+ dividend along the way!

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