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I Bought Ford Stock, Even Though It Doesn't Pay A Dividend

Published Tue, 17 Nov 2020 14:07:38 -0500 on Seeking Alpha

Seeking AlphaLong Ideas | ConsumerĀ I Bought Ford Stock, Even Though It Doesn't Pay A DividendNov. 17, 2020 2:07 PM ET|| About: Ford Motor Company (F), Includes: AMD, AMZN, CVS, DPZ, PTON, SBUXby: Rocco PendolaRocco Pendola Portfolio strategy, retirement, dividends, Growth At Reasonable PriceSummarySometimes the targeted marketing a company does makes a difference.
Among the major, traditional automakers, I suspect Ford will help lead the green revolution.
But, more than that, Ford thinks and acts like a tech company.
I have been looking for a turnaround play to buy. Ford was hiding in plain sight.
I'm long 100 shares of Ford (F) and 10 F Jan 2023 $15 LEAPS call options.
Source: Author's Charles Schwab account
In this article, I provide a window into why I'm long Ford, a stock that doesn't pay a dividend. I broke my own rule by purchasing Ford. It's the first time in a long time I have bought a stock that doesn't pay a dividend. However, I don't think the dividend suspension will last long.
Things change quickly.
This is a Seeking Alpha News item from March 19, 2020:

And from October 28, 2020:

On Ford's most recent earnings conference call, President and CEO Jim Farley addressed the dividend, sort of, in response to an analyst query:
Joseph Spak
And then just lastly John, I saw in the media I think made a comment about how it's too early to talk about the dividend reinstatement. I realize ultimately it's a board decision, but I'll this up I guess to Jim and John in each of your opinion should Ford give any dividend over the coming years given the transformation you're talking about and if so, what are really the parameters you're looking for, for reinstating that?
Jim Farley
Thanks for the question. I don't think this is the time to have that discussion. I think we need to have that framed up in our total capital strategy and calls on capital and where we're headed as a business and I think next spring... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
CVS CAREMARK 63.90   17.9 3.57 2.00 3.14
STARBUCKS 92.06   32.6 2.82 1.44 1.59
DOMINO'S PIZZA 246.79   27.5 8.96 2.60 1.07
ADVANCED MICRO DEVICES 30.21   177.7 0.17 0.00 0.00
AMAZON.COM 1843.55   76.5 24.10 0.00 0.00


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