Key Points
-
Altria (NYSE: MO) remains a superior dividend stock compared to Ford (NYSE: F), with stable cash flow and a reliable payout, while Ford’s dividend sustainability is in doubt due to quality and execution risks.
-
Ford’s EV business continues to disappoint, with May EV sales down 25% year-over-year and F-150 Lightning sales plunging nearly 42%, raising questions about its $20–30 billion EV investment strategy.
-
Despite strong overall sales growth of 16% in May, Ford’s persistently high recall volume and ongoing warranty expenses significantly undermine its earnings and investor confidence.
-
Are you ahead, or behind on retirement? SmartAsset’s free tool can match you with a financial advisor in minutes to help you answer that today. Each advisor has been carefully vetted, and must act in your best interests. Don’t waste another minute; get started by clicking here.(Sponsor)
Watch the Video
Transcript:
[00:00:04] Doug McIntyre: Yeah. Now, the thing is that Altria will keep its dividend up. It has the cash flow. People don’t know whether Ford (NYSE: F). Can keep its dividend where it is, which is the reason there’s anxiety. Let’s say I wanted to buy a, dividend stock. I want a big yield. The problem is, I don’t know if Ford can keep it there.
[00:00:24] Lee Jackson: Well, as we’ve discussed in the past, the Ford family controls that and they’re the biggest income takers from that, pretty rich dividend. So. I mean, Ford’s been around a long time and given that the product line is as good as it is, you would certainly think that’s well, like you’ve always maintained ’cause you’re our Ford expert.
[00:00:47] Lee Jackson: If they could just get a new CEO that knows what he’s doing, they really could take off.
[00:00:52] Doug McIntyre: Yeah. Lee, let’s break down for a second. Ford’s May sales. So if, you took their top line sales up 16%. Very impressive. Let me just pull the number here. So they went to 220,959. Great. Great quarter. Yeah. But EV sales down 25%. To 6,723 and the, that’s not very many. The car, the vehicle that was going to turn Ford into a behemoth in the EV business was, its F-150 Lightning, named after it’s the best selling vehicle in the United States for the last four decades.
[00:01:33] Doug McIntyre: Yeah. Now catch this. Down 41.7% to 1,902. That’s 1,902 Sold in the whole country over the course of 30 days.
[00:01:49] Lee Jackson: That’s not very many is it?
[00:01:52] Doug McIntyre: This, we have four here. Depending on who you talk to, is spent 20 to $30 billion. To be in the US EV business and this is all they have to show. There’s, nothing else to show.
[00:02:08] Doug McIntyre: And it’s another example of the fact that listen, Ford should be a $15 stock. Okay? I think so too. If they hadn’t gone crazy with EVs and they didn’t have these warranty prob problems. I’d buy Ford at $15. It’s at 10 plus now. I wouldn’t buy it at eight today. It’s, it’s all they’re proving to me is that they’re a gas powered car company.
[00:02:35] Doug McIntyre: Okay. What? Why?
[00:02:37] Lee Jackson: Yeah. So is everybody else.
[00:02:38] Doug McIntyre: Yeah. Why mess around with it? Why don’t just say to investors, we make fossil fuel cars and that’s all people want. Therefore you should buy our stock. Forget about all the mistakes we made with EVs. Forget about the 20 or 30. We’ll just take a massive
[00:02:54] Lee Jackson: charge for an EV and go the other way.
[00:02:56] Doug McIntyre: We’ll just basically take that goodwill right off one quarter and after that it’s clear skies. They said this year they’re gonna lose five to five and a half billion dollars. They’re selling less than 2000, lightnings a month. It is absolutely it. It’s like somebody went out of their minds in Detroit.
[00:03:16] Lee Jackson: Yeah. and the interesting thing is I think from the, bigger viewpoint, Ford, I don’t know if you’ve seen any of their new marketing, but I mean, they have some great ideas to, to, to, and Ford has a strong customer base. I mean, yeah, especially here in the South where owning American car, like in Michigan is a, big deal.
[00:03:41] Lee Jackson: And, they have you get some of the EV stuff, that you can plug in at home and charge your car and they will take your car, your vehicle to and from the dealership. So I, they’re constantly, they’re like winning and then running into a wall constantly.
[00:04:00] Doug McIntyre: Well, we have lots and lots of reasons to be sellers of Ford or if we, or, not buyers, so.
[00:04:08] Doug McIntyre: Basically two bad news for four EV sales getting slaughtered, number one. Yeah. And recalls just beyond comprehension.
[00:04:18] Lee Jackson: Yeah. Yeah. They gotta fix that. ’cause the quality control, that’s, there’s somebody somewhere who’s either head of engineering or head of design or something that’s responsible for all this and they gotta hold these people accountable because you just, like you said, you just can’t constantly have massive recalls.
Get Ready To Retire (Sponsored)
Start by taking a quick retirement quiz from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes, or less.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Click here to get started!
The post Altria (MO) Is a Better Dividend Stock Than Ford (F) appeared first on 24/7 Wall St..
