The Silver Lining In Ford: Stock Slammed Since Earnings, But Dividend Yield Now Over 5%
Ford Motor Company (NYSE: F) saw its stock lose another 3 percent on Tuesday, bringing its total decline to more than 13 percent over the past five trading sessions.
Ford reported weaker-than-expected earnings results for its second quarter, including an earnings miss and a declining net income. The company's cautious outlook resulted in investors pounding the stock immediately following the release.
Ford's stock is now lower by nearly 15 percent since the start of 2016 and nearly 20 percent over the past year. There is, however, a silver lining to Ford's stock: an attractive dividend yield of 5 percent.
Ford's stock pays a quarterly dividend of $0.15 per share and has been doing so since the beginning of 2015, except for a one-time special dividend of $0.25 per share in January 2016.
Ford's stock peaked at $15.84 in October 2015, implying its dividend yield at that time was 3.8 percent. Granted, some investors consider this to be a strong dividend paying yield, but the stock's decline since then all but erases any dividend gains.
Ford's stock began the trading year at $15.59, implying a dividend yield (excluding any effect of the one-time dividend) of 3.8 percent.
Ford Versus Peers
How does Ford's 5 percent dividend yield compare to its peers? General Motors Company (NYSE: GM)'s stock offers a slightly higher yield of 5.04 percent, as the stock pays a quarterly dividend of $0.38.
General Motors' stock has also performed better than Ford's, having lost 11 percent since the start of the year and around 4 percent over the past year.
Toyota Motor Corp (ADR) (NYSE: TM)'s dividend yield of 3.33 percent compares poorly to Ford's, and the stock has lost 18 percent over the past year. The same can be said for Honda Motor Co Ltd (ADR) (NYSE: HMC) 2.73 percent dividend yield, as a stock that has lost more than 17 percent over the past year.
Finally, Ford's stock is trading at a P/E ratio of 5.36. By comparison, General Motors' PE ratio stands at 3.85, while Toyota's stands at 7.63 and Honda at 15.00.
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Latest Ratings for F
|Dec 2016||BMO Capital||Initiates Coverage On||Market Perform|
|Dec 2016||Macquarie||Initiates Coverage On||Neutral|
|Nov 2016||Berenberg||Initiates Coverage On||Sell|
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