I've been pleasantly surprised this AM that F hasn't retreated much ...and appears to be gaining momentum...the question always is can we go further and does the street see enough long-term growth.
You could be right, but Ford's dividend has changed some of the dynamics.
The House of Rep's inability to negotiate in Aug 2011 due to having"taken pledges"has been countered economically by a rising economy. Rising private revenue means rising public revenue to cover debt. Consumer sentiment has risen at the same time. Howevere, there is an after-effect.
FUND FLOWS. A serious $20-30 billion was pulled out of stock funds after the Aug 2011 House of Reps fiasco, went into money markets and, from there, gradually into bonds. As sentiment has risen, the money has come back out of bonds, but with the people involved, now a few years older, preferring dividend-payers to make up for income lost as the bond part of the portfolio goes down.
A DIV-HUNTER COHORT. Greater demand for dividends from a big "aging cohort" means the technical watchers need to get real and start looking at demographic charts and not just watch the RSI. The dividend-hunting is a natural effect of boomers nearing retirement. The transition TO that has maybe happened sooner than it woud have otherwise. Too many felt "stolen from" after the May 2010 Flash Crash and later the Aug 2011 Crash caused by the worst in the House of Reps. They now want something made "safer" by a nice dividend putting a bottom on how low it can fall.
JB, Shaggy's mom