Shares of Ford (F) have been performing about as well as their old pickups, and shareholders of the blue oval have had a ride as rough as those old trucks, too.
Fortunately, shares are nearing major support around $9. The chart on the left is a daily showing the downside 161.8% extension coinciding with the blue line on the weekly chart on the right. That $9 level acted as resistance going in to and coming out of the recession, then as support several months later.
I'm already an owner of shares from slightly higher prices ($9.50-11.25). I mostly own it for the dividend, but also because it's too cheap at less than 7x forward estimates. That dividend is now about 6.4%, and with a payout ratio of 36%, it also looks pretty safe. There's also some potential growth here, as E.V.'s and autonomy continue to gain momentum.
To be fair, Ford plans on getting out of the car business to focus on trucks and SUVs, er, crossovers (My Tahoe is an SUV... those little car-based boxes are, well, car-based boxes.).
Shares are trying to hold recent lows as support, but I suspect given the broader weakness in equities that shares will ultimately extend to test the $9 level.
In the meantime, I like selling calls against my position to help boost the passive income (I'm currently short Sept. 21 $10's against my shares).
I also like GM -1.91% at these levels, but that's another post. :)
Fortunately, shares are nearing major support around $9. The chart on the left is a daily showing the downside 161.8% extension coinciding with the blue line on the weekly chart on the right. That $9 level acted as resistance going in to and coming out of the recession, then as support several months later.
I'm already an owner of shares from slightly higher prices ($9.50-11.25). I mostly own it for the dividend, but also because it's too cheap at less than 7x forward estimates. That dividend is now about 6.4%, and with a payout ratio of 36%, it also looks pretty safe. There's also some potential growth here, as E.V.'s and autonomy continue to gain momentum.
To be fair, Ford plans on getting out of the car business to focus on trucks and SUVs, er, crossovers (My Tahoe is an SUV... those little car-based boxes are, well, car-based boxes.).
Shares are trying to hold recent lows as support, but I suspect given the broader weakness in equities that shares will ultimately extend to test the $9 level.
In the meantime, I like selling calls against my position to help boost the passive income (I'm currently short Sept. 21 $10's against my shares).
I also like GM -1.91% at these levels, but that's another post. :)