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3 Big Dividend Payers With Rising Share Prices

Stocks in this article: MSFTFGLWYHOOAAPLORCLNOKGMTMTSLA

F Dividend Yield (TTM) Chart F Dividend Yield (TTM) data by YCharts

Ford (F)

Price To Book: 3.5

Earnings Payout Percentage: 20%

Background: Ford Motor produces cars and trucks. The company and its subsidiaries also engage in other businesses including Ford Motor Credit Company. Ford trades an average of 37 million shares per day with a market cap of $68 billion.

Here's a fact you may not know, based on market cap: Ford is bigger, or at least more valuable than General Motors (GM). GM has a valuation of $51 billion.

I've always viewed GM as the larger company, and I'm correct based on revenue. GM outsells Ford by about $10 billion a year, but even that difference is narrowing. What's even more startling is Tesla Motors (TSLA) with a valuation of $22 billion.

To put the numbers in perspective, currently Ford sells more Focuses in about a week than total Tesla sales for a year. Adding insult to injury, unlike Telsa, Ford is profitable. Either Ford is heavily undervalued or Tesla is overvalued. I'm thinking both.

The bigger concern for now is Toyota Motors (TM) as they go toe-to-toe fighting for bragging rights for the number one-selling car in the world. The previously mentioned Ford Focus was named the number one-selling car in 2012, but Toyota disputes the methodology in the count.

There's no debate the stock is rewarding investors. About a year ago I wrote several articles describing Ford as a bargain in the $10 area. So far so good, but Ford has massive upside, in my opinion. It may not feel comfortable buying a stock near its 52-week high but revenue and earnings growth justify a price far north of $20 a share.

The best part is that while waiting for $20 or more investors receive 40 cents a year in dividends for a yield of 2.3%. Admittedly, 2.3% is on the low side to make the list, but Ford is such a compelling stock right now that it makes the cut.

F Payout Ratio TTM Chart F Payout Ratio TTM data by YCharts

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