Updating Ford Motor Co.

Article Excerpt

FORD MOTOR CO. $10 (New York symbol F, Cyclical-Growth Dividend Payer Portfolio, Manufacturing & Industry sector; Shares outstanding: 3.9 billion; Market cap: $39.0 billion; Dividend yield: 6.0%; Dividend Sustainability Rating: Above Average; www.ford.com) holds 14.4% of the U.S. auto market, which means it’s only second to General Motors (with roughly 16.1% of U.S. sales). Ford last raised its quarterly dividend by 20.0% with the March 2015 payment to $0.15 a share. The company’s annual dividend rate of $0.60 yields a high 6.0%. Ford also paid a special dividend of $0.05 a share in March 2017. The company aims to spur its long-term growth with key initiatives, including refreshing roughly 75% of its car models over the next two years. It will also spend more on new trucks and sport utility vehicles (SUVs) instead of cars. By 2020, SUVs could account for half of all its U.S. sales. In addition, Ford is spending $11 billion to develop new electric vehicles. The company aims to offer 40…