In my latest guide to buying Ford stock, I’ll show you everything you’ll need, including how and where to buy Ford shares UK. Buying Ford UK shares and stocks is quick and easy if you do it on a trusted, regulated and licensed trading platform.
Also consider: Best stocks and shares to buy now
This is just a suggestive Ford UK shares guide and doesn’t amount to or constitute investment advice. Remember, buying, investing and trading Ford shares and stocks comes with significant risk to your savings and nothing is guaranteed.
- Choose a trading platform. If you’re unsure which one to choose, see my guide to the best trading platforms UK.
- Open an account. You will need your national insurance number, personal ID and bank details.
- Enter payment details. Fund your new trading account via a debit card or bank transfer.
- Search for the stock code on your trading platform. Search for “F”.
- Research Ford shares information. Your trading platform can show you the latest information for Ford.
- Now buy your Ford shares. Go ahead if you’re happy to buy Ford shares.
Ford (F) Live share price
76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
Investing and trading in the UK stock market has never been easier and more accessible than with online brokerage platforms. You can buy Ford stocks with a reputable, secure, reliable stock broker within a few minutes. Below, I will show you the six steps to buying Ford stock on a trusted brokerage platform.
Step 1: Choose a Stock Broker
If you want to buy Ford stock online in the United Kingdom, you’ll need to find the best trading platform. Your broker must provide you full access to the New York Stock Exchange and offer reasonable commissions and fees.
Not all brokers in the UK will allow you to buy Ford shares since some of them do not have access to the New York Stock Exchange. It is important to note that you need to choose a broker that offers you access to this stock exchange platform.
Most brokers offer shares of this leading car manufacturer in the UK. That means you can compare different platforms and apps based on not only whether they support trading on Ford shares but also have key features such as ease of use and security.
To save you from many hours of researching, you’ll find some top trading platforms that allow you to buy Ford stocks further below this page. Alternatively, you can obtain advice from industry experts if you want to sign up with a top-notch brokerage platform.
Step 2: Open an Online Brokerage Account
After picking a top-rated brokerage platform, visit its official website and open an account. You’ll need to provide a few details, which include your name, email address, phone number, date of birth, and national insurance number.
Also, you will need to create a username and a strong password to complete your account opening process. The best part is that the process will only take a few minutes, especially if there is no background check on your account.
Step 3: Enter Payment Details and Deposit Funds
Once you have opened a brokerage account, your broker will require you to upload some identification documents, including a recent utility bill or UK bank account statement and a driver’s license or passport.
Your broker asks for these identification documents in order to fulfil the FCA requirements. After this, you can make a minimum deposit via some of the most popular and trusted payment methods available, including bank transfer, Neteller, Skrill, PayPal, and Debit/Credit cards.
Step 4: Search for Ford Stock Code on Your Trading Platform
The next step is to search for Ford stock and place your order. Use the Ford stock code F to find Ford shares on your brokerage platform. Enter the Ford stock code in the search field and wait for the results to appear. Once they appear, choose Ford stocks and press the Trade button. The button will trigger the Ford shares trade form that you’ll have to complete.
Step 5: Research Ford Shares Information
Like any investment you’re planning to make, it is vital to research before investing in Ford shares. You can also seek independent advice if you don’t have enough time to research.
However, you’ll need to pay a small fee for the information you obtain from long-term investors, experts or analysts. When performing your independent research, you need to keep in mind a few aspects, which include the following:
Ford Stocks Price History and Market Cap
Ford stocks were listed on the NYSE in 1956. The Ford motor company is one of the oldest and leading stocks in the US and UK marketplaces. Early backers of the company were rewarded excellently in the next decades.
Across its life as one of the NYSE constituents, the Ford motor company has executed eight stock splits. Based on adjusted stock prices for the eight splits, the company stocks last peaked in the late 1990s at just over £90. In recent times, the Ford stocks have performed excellently since their lows of £3.96 in March 2020.
With the Ford stocks breaching £12 each in early 2021, this represented a rise of more than 200% in only ten trading months. This resulted in the company increasing its market cap to over £42 billion.
Ford Shares Dividend Information
Ford distributes its stocks, so as a shareholder, you’ll be entitled to your shares. Its latest stock price was £0.15 per share, which was similar to the dividend size of 2015. Also, the car manufacturer pays special dividends, which are announced sporadically. With that in mind, Ford can be a perfect choice if you are looking for the best company in the automobile industry that offers dividend payments annually.
Ford EPS and P/E Ratio
According to its latest earnings report for Q4 2021, Ford shares have an EPS of -0.07 and a P/E ratio of around 55. Many third-party commentators state that the average P/E ratio of the automobile industry in the US is 16. This metric shows that Ford stocks could be over-valued in relation to the whole industry.
Step 6: Buy Ford Stock
The final task you need to complete is to buy Ford shares. Since you already know how to search for Ford stocks in the search field, look for the company on your brokerage platform’s dashboard and press the Trade button to access the form. You’ll have to specify the amount of money you want to invest in Ford stocks.
The amount you enter must meet the minimum deposit requirement of your broker. Once you are happy with everything, confirm the trade, and your broker will execute the order at the latest stock market price.
Ford Motor Company: A Short History
The Ford motor company is a US-based automaker, the fifth largest in the world based on vehicle sales. Located in Dearborn, Michigan, USA, Henry Ford founded the company on 16th June 1903. The automaker would proceed to become one of the most profitable and largest firms globally. It is also one of the few firms to stand the Great Depression.
The world’s largest family-controlled company, Ford, has been managed by family members for more than a century. The Ford motor company currently includes two leading brands, Lincoln and Ford. The company once owned five other extravagance brands, which include Aston Martin, Jaguar, Land Rover, Volvo and Mercury. Ford sold these brands to other firms and decided to discontinue Mercury.
In 1896, Henry Ford designed and created his first automobile, which he named the quadricycle. In 1908, Ford launched its first Model T, and the demand for this vehicle was high. With the automobile assembly line introduced in 1913, the company’s founder revolutionised the auto world. Vehicles were no longer commodities for the elite; they were available to every individual.
By the early 1920s, Ford motor company became the most popular car maker in the world. Ford produced more than half of the US’s cars and shifted to military production in 1941, manufacturing general-purpose jeeps, before turning to civilian production four years later. Post-World War II triggered the production of the most iconic vehicles of all time, making the company a household name.
Once you open an account with a regulated broker, you don’t go ahead and buy Ford stocks. You need first to consider two main factors, which are:
You may be familiar with Ford cars and trucks, but do you understand how the company is managed? And how about its annual dividend yield, net income and overall financial situation? With an industry leader like Ford Motor Co, it is vital to know the amount of revenue that comes from each section and how each affects the net income of the company.
If you are interested in dividend payments, check out the dividend yield per share over the past 12 months, as well as the current stock price. Also, it is necessary to look at the dividend payout ratio. Long-term investors look for stocks with 80% payout ratios and below. Firms that have higher ratios may face challenges when it comes to affording their dividends.
If you’re unable to research, keep in mind that experts provide investment advice that can help you make informed decisions. Experts that offer personal advice always gain access to the latest news and interpret complex financial subjects to provide helpful information such as sticking to a particular trading strategy and many others.
Will the Ford Stock Fit into Your Portfolio?
Once you have done your own due diligence on Ford shares, consider whether buying them would make sense in terms of your overall investment aims. You should only buy Ford shares using the money you are ready to invest for a minimum of five years. That way, you’ll have a lot of time to recover your losses.
Speaking of portfolio diversification, you should consider things like mutual funds, exchange-traded funds and index funds as alternatives to purchasing individual stocks. Having a diversified portfolio of different stocks means researching dozens of firms and investing in their shares.
Where and How to Buy Ford Stock
As a UK investor, you can find it challenging to buy Ford stock without using CFDs or financial arrangements made using derivatives that settle down differences between opening and closing trading prices with real money. Here are details about the different ways of trading Ford shares.
CFDs are contracts between sellers and buyers that stipulate that the buyers must pay the sellers the differences between the current asset value and their value at the contract times. Trading CFDs provides investors with the opportunity to benefit from stock price movements without having to own the underlying assets.
The CFD trading contract doesn’t take into consideration the underlying value of assets. It only considers the stock price change between the entry and exit of the trade. This’s accomplished via a contract between the broker and the shareholder and doesn’t utilise any futures exchange, commodity, forex or stock.
Spread betting is a derivative strategy that traders use to speculate on Ford shares without having to own underlying assets. It involves guessing whether the Ford stock price will fall or rise in the future. With spread betting, you can pay half cost of Ford stock to test-drive the market before fully investing your money.
How to Find the Right Platform
With numerous online brokers available to choose from, it can be challenging to select the best one. While you can navigate to the list of top brokers and pick your favourite one, you need to find out further information either by doing your own research or seeking independent advice from professionals; however, this can attract an additional cost.
The most important features to consider when finding a broker in the online domain include the range of stocks available, exchange commission and fee, reputation, regulation, payment methods and customer care support. If you find a legally permitted platform that offers all these features and they’re friendly enough, that broker can be a perfect investment destination.
You must use the P/E ratio if you want to know if Ford shares are over- or under-valued. To calculate the P/E ratio of Ford, you need to take its net profit and divide it by the number of outstanding shares.
A stock is undervalued if the ratio is lower, and it is overvalued if it’s higher. Be sure to keep into consideration the P/E ratio of Ford before you can trade CFDs or buy shares. A Ford stock can only be overvalued when its current trade value doesn’t align with the company’s earnings forecast.
Why Do Investors Invest in Ford Stock?
Whether you’re considering purchasing Ford stock or shares of similar firms like Tesla and Aston Martin, it is vital to research in order to know why people are investing their funds. Here are the main reasons why UK investors are considering investing in Ford shares.
Partnership with Google
Recently, the company reported that it had formed a lucrative partnership with the giant Google. Based on a six-year deal, the partnership will see the Android operating system integrated into Ford vehicles.
This is good news for investors since it indicates that the management of this company is committed to changing the age-old car producer into the current century. Google’s technology will allow the company to utilise AI, cloud computing and machine learning in its products.
Ford Shares Trajectory
While you would expect a huge car producer to have suffered massively due to strong lockdown measures, Ford Motor Co shares price has increased since hitting its lows in March 2020. Investors who bought the shares between 2020 and 2021 earned profits of more than 200%.
And this rate is expected to continue increasing across 2022 and 2023. On top of this, the Ford management has resisted any plans to suspend or cut its dividend payment, meaning shareholders will continue to increase their earnings in the future.
Does Ford have Any Electric Vehicles?
2021 was a successful year for the car producer as a result of its strong entry into the electric vehicles space. A significant part of the company’s focus in the electric vehicles sector in the future is surrounding its electric truck, known as F-150 Lightning.
The company reported that it has already taken over 200,000 reservations from clients for this EV product. While Tesla’s model is already popular among car users and its manufacturer has sold as many electric vehicles as its main rival in 2021, Ford is looking forward to linking the gap in the coming months.
According to pre-release sales reports, the F-150 Lightning has already become the largest-selling truck in the US. Ford is preparing to manufacture over 60,000 F-150 Lightning brands in 2022 and more than 150,000 by 2024.
Many price analysts and predictors are predicting the value of Ford stock to be a moderate buy across 2022 and 2023. While this doesn’t confirm profits upon entry on the latest levels, the firm is gearing towards a solid 2023 as a result of its EV products. The car producer is expecting to increase between 15% and 25% of its yearly revenues.
Also, the company is expected to boost its EV sector with its F-150 Lightning electric truck. With more than 200,000 pieces already accepted by Ford, the company expects to reduce the gap between its sales and those of its main competitor.
What is more? The Ford stock hasn’t experienced any price corrections despite slow earnings in 2022 Q1. The earnings decrease is primarily due to the car manufacturer’s massive stake in the EV sector. Based on its past performance, Ford offers a solid stock that provides investors with the opportunity to earn quarterly dividends of 0.1 a share with a 2.67% yearly dividend yield.
With the car producer being massively undervalued in the EV industry compared to its close rivals, its stock is a huge pick from most enthusiastic stock-market traders and analysts.
Paying fees and commissions isn’t a financial crime, and you should be ready to encounter different types when you are in the process of buying Ford stock. A commission is a flat fee per trade or a fee based on the total value of the traded volume.
Commissions and fees, including stamp duty, make you exceed the target price, and they vary from one platform to another. You should strongly consider the fees and commissions your brokerage platform offers before you can start trading since they can significantly increase your investment budget.
How to Reduce Risks on a Trading Day
Buying Ford shares comes with significant risks. However, you can avoid the risks if you follow these investor protection tips:
Diversify Your Portfolio
Invest your funds in different stocks to avoid losing all of your capital. Purchase shares from other companies apart from Ford to diversify your portfolio. The recommended number of shares you need to own from a particular company should range between 20 and 30.
There’re numerous scam brokers out there who are after your hard-earned cash. When purchasing shares online, you should be sure to sign up with one of the recommended brokers. Experts test these brokers on a regular basis, so you’re sure to find a perfect match.
FAQs about Buying Ford Stock
How Do I Buy Shares in Ford?
Is Ford Stock a Good Buy?
The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance. Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.