The share price of major U.S. auto manufacturers such as Ford Motor Co. (NYSE:F) certainly paint the picture quite well - since rebounding from recession-related woes, Ford's share price has languished as many investors and analysts question whether the world has arrived at "peak auto" and whether companies like Ford will be able to effectively, and cost-efficiently, transition production toward electric vehicles and away from gasoline and/or diesel engines.
The firm's new management team and relatively strong balance sheet and fundamentals paint a new picture for Ford, a company which has churned out record profits in recent years as people all over the world continue to upgrade their vehicles at an impressive rate.
While some risk of a dividend cut may be in the cards should Ford's cash flow deteriorate substantially, at this point in time, the firm remains on solid ground and dividend distributions are not in jeopardy, meaning the cheaper the company's stock get, the higher its yield - an excellent scenario for those who are less concerned about capital appreciation than dividend income.