Stock Purchase: Added To My Ford Position

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.

You may also like...

8 Responses

  1. 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

    • Dividend Empire Dividend Empire says:

      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

  2. Vivianne says:

    Ford and gm got hit hard due to china exposure. I’m thinking of bolstering my stake in ford and add on gm.

  3. Div4Son says:

    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

    • Dividend Empire Dividend Empire says:

      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

  4. 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!

    • Dividend Empire Dividend Empire says:

      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

Leave a Reply

Your email address will not be published. Required fields are marked *

CommentLuv badge