With a 4.06% Yield, Is Ford a No-Brainer Dividend Stock to Buy in June?
Written by Neil Patel for The Motley Fool -> Ford's dividend yield looks strong because of the stock’s low valuation. Cyclical demand and low profits add risk to the durability of the quarterly payout. Ford Motor Company (NYSE: F) shares have been on a tear. In the past 12 mon
Ford's dividend yield looks strong because of the stock’s low valuation.
Cyclical demand and low profits add risk to the durability of the quarterly payout.
Ford Motor Company (NYSE: F) shares have been on a tear. In the past 12 months, they have climbed 44% (as of June 5).
In three of the last four quarters, the business reported profits that exceeded analyst estimates. Market sentiment toward the automotive stock has also improved, as the price-to-earnings (P/E) ratio has expanded by 38% in the past year.
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Ford's dividend yield is still meaningful at 4.06%. Is this a no-brainer dividend stock to buy in June?
Even after its huge surge, the valuation remains low. Ford shares trade at a current P/E multiple of 11.3. This represents a 56% discount to the broader S&P 500 index.
But investors shouldn't rush to buy what they think might be a compelling value stock .
