When contemplating the ideal entry point for purchasing shares in Ford Motor stock (F), it seems that $10 emerges as a magical figure. This is not solely due to Ford’s stock rebounding around the $10 mark in November of the previous year. It also stems from the remarkable vehicle delivery performance Ford showcased in August, an aspect that has seemingly been overlooked by the market, not to mention Ford’s attractive dividend yield. These factors collectively paint a bullish picture for F stock.

Ford Motor, an iconic American automaker renowned for its production of both internal combustion engine vehicles and electric vehicles (EVs), appears to have more tricks up its sleeve. A patent application suggests that Ford is exploring a system to transform roads into EV charging stations.

Despite sliding towards the pivotal $10 threshold on consecutive days, there isn’t any alarming news surrounding Ford in recent reports. While a recent recall of over 90,000 automobiles due to engine intake valve issues raised some concerns, it doesn’t justify a sustained decline in share price. Hence, contrarians might find an appealing opportunity in Ford stock.

When a stock’s price takes a dip, maintaining stable dividend payouts can lead to an increase in dividend yield. Given Ford’s current robust yield, my bullish stance is fortified as this high yield is likely to attract investors with a focus on income.

Exploring Ford’s dividend further, with F stock trading at $10.27 per share, the company has been paying $0.15 per share in dividends each quarter. Being a consistently profitable entity, Ford is expected to sustain or even increase this dividend distribution. This translates to at least $0.60 per share annually, offering a forward annual dividend yield of 5.84% based on the current share price. Compared to the Consumer Cyclical sector’s average dividend yield of around 1%, Ford’s dividends remain attractive even in a scenario where a reduction occurs. This aspect makes Ford stock a compelling option for long-term investors around the $10 mark.

Delving into valuation, Ford’s stock presents a favorable multiple, especially in the context of its reduced share price. A low valuation, combined with a significant dividend yield, strengthens the case for a bullish outlook on F stock.

Using a non-GAAP trailing 12-month price-to-earnings (P/E) ratio for Ford with a share price of $10.27, the company’s trailing annualized EPS stands at $1.64. Consequently, Ford’s trailing P/E ratio computes to 6.26. In comparison, the sector median non-GAAP trailing 12-month P/E ratio is notably higher at 14.11, highlighting Ford’s substantial value proposition with a P/E ratio less than half the sector median.

Amidst Ford’s appealing valuation, the significant August sales figures further bolster the argument for F stock being a lucrative investment. In August, Ford witnessed the sale of nearly 183,000 vehicles, reflecting a robust 13.4% year-over-year growth, surpassing the industry estimate by a considerable margin. Furthermore, the surge in sales of Ford’s all-electric and hybrid vehicles underscores the company’s diversified growth strategy.

While skeptics may downplay the significance of one strong sales month, Ford’s solid performance in August hints at the company’s stability both in terms of sales and dividend payments.

As per data from TipRanks, Ford stock holds a Moderate Buy rating, combining five Buy, nine Hold, and one Sell recommendations from analysts over the past three months. The average price target for Ford stock sits at $13.75, suggesting an upside potential of 32.46%.

For investors seeking guidance on F stock transactions, Michael Ward of Benchmark Co. emerges as the most accurate analyst based on a one-year timeframe, boasting an impressive average return per rating and a commendable success rate.

Considering the absence of adverse developments warranting Ford’s recent share-price decline, the company’s profitability, robust sales performance in August, reasonable valuation, and attractive dividend yield collectively paint a compelling picture for potential investors. With all factors considered, acquiring F stock at or near the mesmerizing figure of $10 appears to be a prudent move.