I was finally able to transfer about $1500 into TradeKing, part of my Dividend Empire portfolio, after a long drought. Since commissions are so low in this account I decided to split the cash into two purchases, one of which I will detail in this post.
I first initiated a position in Ford (F) back on April 1, 2015 with the purchase of 100 shares at $15.89. After a short run up, shares have slid down to under $15 per share.
The bad news is I also own 7 call contracts with a $15 strike (Jan 2016 exp) from my option trading days. I was hoping to eventually sell some of these for a profit in order to fund the exercise of 1-2 of the contracts. Ford would have to rise to at least $17 per share by January 2016 for this to happen.
The good news is that the recent decline in share price has pushed the Ford dividend yield over 4%. I still feel the same way about the company as I did back in April so I took this opportunity to add to my position.
Ford (F) Purchase Details
- Sector: Goods
- Industry: Auto Manufacturer
- Purchase date: 7/7/2015
- Portfolio: Dividend Empire Portfolio
- Shares purchased: 54
- Cost per share: $14.7099
- Commissions: $4.95
- Cost basis: $799.28
- Yield on cost: 4.1%*
- Forward income: $32.40**
These 54 shares of Ford bring my total share count to 154.978. This purchase adds $32.40 in forward dividend income bringing the total for the position to $92.99** and raises my portfolio total to $690.22.
The higher dividend yield (4.1%) on this purchase increases my Ford yield on cost from 3.77% to 3.86%* and my portfolio yield on cost went from 3.51% to 3.53%.
My Dividend Empire portfolio has been updated to reflect the addition of 54 shares of F.
DE,
Nice addition! I knew there had to be someone else out there that would make a buy in the auto sector. Most DGI folks won’t touch these two with a ten foot pole. Ford and GM both yielding over 4%. It feels like the good old days!
MDP
Thanks MDP! Certainly not a traditional dividend growth stock. But with the huge yield, recent dividend increases and incredible growth prospects I’m willing to take a chance. Good luck with your GM buy!
Take care,
Ken
Ford and gm got hit hard due to china exposure. I’m thinking of bolstering my stake in ford and add on gm.
Sounds like a great plan Vivianne! I’m looking into GM as well.
Ken
Nice buy. I don’t have any positions in the auto industry. I will need to look into it.
Thanks for sharing and the idea.
D4s
Thanks D4s. I’ve been bullish on Ford for quite some time now which is why I still have those call options. I’ll be a buyer any time F is at these levels.
Ken
Good pickup Ken! You still have plenty of time to come out ahead with those calls. I’m a big Ford fan (and fellow shareholder)! Have you seen their new prototype for their E-bike? It looks great and could be quite popular across the world!
Thank you Blake! I agree there is plenty of time left for the calls. I was hoping for an early move though so I can capture some of the time value left in the contracts.
I have seen Ford’s E-bike – super cool! Thanks for stopping by.
Ken
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