Buy these auto-related stocks for income

Article Excerpt

FORD MOTOR CO. $9 (New York symbol F, Cyclical-Growth Dividend Payer Portfolio, Manufacturing & Industry sector; Shares outstanding: 4.0 billion; Market cap: $36.0 billion; Dividend yield: 6.7%; Dividend Sustainability Rating: Above Average; www.ford.com) holds 14.4% of the U.S. market, which means it’s only second to General Motors (with roughly 17.6% of U.S. sales). Ford last raised its quarterly dividend by 20.0% with the March 2015 payment to $0.15 a share. The annual rate of $0.60 yields a high 6.7%. The company also paid a special dividend of $0.05 a share in March 2017. In the three months ended September 30, 2018, overall revenue fell 3.2%, to $36.45 billion from $37.67 billion a year earlier. Slowing sales in Europe and China offset gains in North America. In response, Ford recently launched an SUV exclusively for the Chinese market. Higher raw material costs and unfavourable exchange rates cut earnings by 34.0%, to $0.29 a share from $0.44. Ford now expects to earn between $1.30 and $1.50 a share for all…