Why I Sold All My Ford Stock (F)

I can remember my first car like it was yesterday. My mom bought me a 2000 Ford Escort so I could have a car to drive to high school everyday.

This is the first car I ever owned. Thanks for the memories, Ford.

Although it wasn’t much, I truly loved this car and we had some great memories. When I went away to college, I ended up selling the car but haven’t owned a vehicle since. I use Uber for most of my transportation needs.

As much as I am emotionally attached to Ford Company, I recently sold all my shares after reading their latest Q4 2019 earnings report. While the S&P 500 has been bullish run, Ford stock has lost a ton of value over the last 5 years.

Ford Stock Performeance from 2015 to 2020
5 Year Ford Stock Chart

The only positive thing was the nice dividend yield but management hasn’t incrased the dividend in years.

Ford continues to experience declining sales because they aren’t selling the right products. In the meantime, companies like Nio and Tesla are seeing massive gains in orders and deliviers YOY.

Why? Ford needs to sell electric cars. Stop making hybrids and all these other cars that nobody wants to buy anymore. Declining sales = declining demand. Sell cars that people want to buy. Focus on the younger generation because they are the consumers of the future. Change with the times or get left behind.

Electric vehicles is the future yet Ford continues to drag its heels after enjoying the automotive market trends for years.

At this rate, Ford stock will probably head towards $5 and I don’t see any reason to own the stock unless a clear bottom is formed.

I will miss the dividends but I sold off my Ford stock and picked up some shares of Proctor & Gamble (PG) to help keep some dividend income for my retirement portfolio.

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Tarik Pierce is the founder of InvestorTrip.com and regularly contributes articles to this website. He studied Economics at Dartmouth College and invests in a mix of dividend stocks, high CAGR tech stocks & cryptocurrencies.

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