June 14, 2012
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.