Tomahawk, WI 01/13/2014 (BasicsMedia) – Ford Motor Company (NYSE:F) has labored hard to be what it is today. That the company is now considered one of the best performing auto stocks is testimony to the business acumen of CEO Alan Mulally. The juts declared dividend increase by the company reaffirms that the managements is getting it right in most things. Furthermore, the 25 percent dividend increase suggests that the company is pleased with its 2014 prospects.

Without saying much, there are already enough reasons why investors looking for a turnaround company should pick Ford Motor Company (NYSE:F). But just as a reminder, here are a few highlights about the company’s performance and position.

The company’s cash strength is impressive by most measure and this makes it one of the most cash secure companies. The company is also reasonably valuated; the market values the company at $63 billion. Ford has a much higher yield put next to the S&P 500. Looking at these strengths, the company still has a lot of opportunity to growth its dividend payout.


Ford Motor Company (NYSE:F) reintroduced dividend in 2012. Its new dividend is 12.5 cents, up from 10 cents, thus an upside of 25 percent. This is the second consecutive time that the company is increasing its annual dividend. The new dividend will benefit shareholders on record as on January 31, 2014.

By raising its dividend, Ford has answered many investor questions, and more so its critics. There is no doubt that there will be more dividend increase in the future. The fact that the company is expanding its market also suggests that beyond dividend, investors will have a lot of value trading the stock.

Ford Motor Company (NYSE:F) offers 50 cents in annual dividend per share, which pushes the yield beyond the 3 percent. Note investors look for dividend yield of 3 percent and above and Ford exceeds this cut. In comparison, General Motors Company (NYSE:GM) is still stuck in no-dividend environment while Toyota Motors (TM) is hovering around yield of 2.1 percent.

Performance in ASEAN

Ford Motor Company (NYSE:F) registered 2013 as one of its best years in recent times. The company experience overall sales growth in most markets including Canada, Europe, China and other emerging markets. A few of the company’s vehicle platforms had particular stellar performance in the year.

Of the markets that Ford noted record performance in 2013 was the Association of Southeast Asian Nations region. The company’s sales in the region rose 7 percent from the previous year after managing to sell more than 96,000 units. The Particular vehicle units which contributed to this strong performance were Focus, EcoSport and Ranger.

The fact is that ASEAN is still far from having impact on Ford’s top and bottom line. Nonetheless, the promise in the region makes it a strategic market for the company in the coming years. What investors should cheer here is that unlike in China where Ford Motor Company (NYSE:F) made a late entry, it is avoiding that mistake in ASEAN region.

Bottom line

Ford Motor Company (NYSE:F) is a nice stock. It has risen and it will still continue to rise because fundamentals allow such future rise. The stock is particularly fairly valued and it is one of the best turnaround stocks that investors can consider in the auto industry.

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