Investors betting on the electric vehicle (EV) revolution have placed their faith largely in unproven automobile manufacturers such as Tesla Inc. (NASDAQ:TSLA), largely ignoring the elephants in the room, including one traditionally undervalued company: Ford Motor Company (NYSE:F).
Ford isn’t a sexy company. Like other major global automotive manufacturers, the company does have a robust EV program, one which it hopes to allow Ford to become a leading EV company in terms of market share and profitability in the long-run. It just doesn’t have the nice story, or the enthusiastic, provocative, and inspiring CEO that Tesla does in Elon Musk.
What Ford does have, however, is a storied history of nearly a decade of mass producing cars for the North American and global markets. Ford is a very simple company that knows what it does and how to do it well (and very profitably) compared to its major peers.
Unlike rivals who have been burdened with vehicle emissions scandals or bottom line underperformance, Ford has continued to truck along (no pun intended) delivering a healthy dividend yield to investors of more than 5% while trading at a very attractive valuation ratio relative to its peers.
Dividend yields of more than 5% are typically very hard to come by, and usually follow a significant depreciation in a company’s stock price. Ford’s current stock price has taken a hit of nearly 40% from its five-year peak, however, it has remained relatively stable of late due to the company’s newfound status as a hedge against the bullish EV play.
We will see how things play out, however I would advise TSLA investors to take a look at adding a few F shares, just in case.
Invest wisely, my friends.
