Ford Takes Advantage of Its Big Upgrade

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The following video is part of our "Motley Fool Conversations" series, in which industrials editor/analyst Brendan Byrnes and industrials editor/analyst Isaac Pino address topics from across the investing world.

In today's edition, Brendan and Isaac discuss Ford and its recent issue of $1.5 billion worth of five-year bonds. Now that Ford has been upgraded to investment grade by both Fitch and Moody's, the company can borrow more cheaply -- it paid 3% on its recent bonds versus 4.25% on similar five-year bonds issued in January. This move will help Ford take advantage of the upgrade and reduce its borrowing costs. Ford, along with General Electric and American Express, was also able to take advantage of a market rally when issuing the bonds. In the video below, Brendan discusses other ways Ford's bump up to investment grade benefits the company, and whether the company deserves a spot in your portfolio. 

Ford now pays a dividend, but at just around the market average, it's not going to show up on income-seeking investors' radars. But if you're looking for some big-time high-yielders, we've created a special free report detailing our nine favorite dividend stocks. It's called, "Secure Your Future With 9 Rock-Solid Dividend Stocks," and it's free. Simply click here to access it today. 


At the time this article was published Isaac Pino owns shares of General Electric. Brendan Byrnes owns shares of Ford and General Motors. The Motley Fool owns shares of Ford. Motley Fool newsletter services recommend American Express Company, Ford, and General Motors Company. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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