Ford Motor Company (F)

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A follow-up story to the one you just posted. Ford has a net cash balance of 14.1 billion.

Michael Ward of Seaport Global Securities initiated coverage of Ford Motor Company (F) on Tuesday with a Buy rating and a $20 price target. A big part of his rationale: Potential for a 5% dividend yield (it’s getting close now with a 4.87% yield) and also another special dividend payment in 2017 (there was a big one in the first quarter this year). Ward writes of Ford’s surplus cash: Balance sheet risk at Ford’s auto operations has been largely eliminated and the company ended June with a net cash balance of $14.1 billion (cash and equivalents less debt). We expect positive operating cash flow of about $7 billion annually in 2016 and 2017, despite an increase in spending for global product programs.