Why Is This Automaker So Cheap?

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The following video is part of our "Motley Fool Conversations" series, in which Motley Fool industrials analyst Brendan Byrnes and technology analyst Andrew Tonner search for value in the market.

In today's edition, Brendan and Andrew look at an iconic automaker that you shouldn't ignore. Ford appears to be dirt cheap right now; it is currently trading at just 6 times earnings, and its stock price has declined by more than 15% in the past month. On top of that, Ford's management has managed to lower its breakeven point for U.S. sales from 17.1 million vehicles in 2006 to 12.8 million vehicles this year. Throw in a catalyst in the form of a dividend that we expect from Ford in the first half of next year, and all this adds up to a stock that we love right now.

If you don't want to wait until next year to put the power of reinvested dividends to work in your portfolio, check out the free report that our analysts have compiled, "13 High-Yielding Stocks to Buy Today." Thousands have requested access to this special free report, and now you can access it today at no cost. To get instant access to the names and detailed analysis of these 13 dividend stocks, simply click here -- it's free.

At the time this article was published Brendan Byrnes and The Motley Fool own shares of Ford.Motley Fool newsletter serviceshave recommended buying shares of General Motors and Ford. Try any of our Foolish newsletter servicesfree for 30 days. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

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