Buying Ford Stock? Here Are 3 Things You Need to Know

Ford Motor Company (NYSE: F), a longtime staple in the auto industry, is a household name that investors are certainly familiar with. The shares, however, haven't made for a great investment. As of this writing, they are up just 30% in the last five years, less than half the gain of the S&P 500. But Ford's current price-to-earnings ratio of 7.3 and dividend yield of 5.3% might be too enticing to pass up.

If you're interested in buying this auto stock, though, you can't ignore these three negative factors. Here's what you need to know.

This company has been around since 1903, making Ford a legacy car manufacturer that has one of the longest histories in corporate America. You might find that impressive, adding to Ford's durability, but this business operates in an extremely mature industry. Vehicle unit sales in the U.S. are essentially flat compared to a decade ago.

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Source Fool.com