F - Ford: Surviving Cyclical Auto Business Through Excellent Diversification

2024-05-30 16:00:00 ET

Summary

• Ford's dividend investment thesis remains robust, thanks to the management's raised FY2024 FCF guidance and its well-diversified automotive offerings across different end markets.
• For example, as retail EV adoption stalls, it has reported double-digit growth in Hybrid sales and commercial/ Ford Pro sales, well balancing its overall performance.
• F's exclusive partnership with BLBD is likely to be a tailwind as well, as the US government offers new funding for electric heavy-duty vehicles and school buses.
• With the stock currently trading at relatively cheap valuations, it remains a compelling buy for those looking to add, with its predictable trading pattern also suitable for swing traders.

We previously covered Ford Motor ( F ) in March 2024, discussing its promising FY2024 guidance and excellent supplementary FQ1'24 dividend payouts, demonstrating the safety of its investment thesis....

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