Ford Motor Company (F), General Motors Company (GM): The Facts

The Americans!

Ford Motor Company (NYSE:F) and General Motors Company (NYSE:GM) have been around for a very long time. The two companies have had their ups and their downs throughout history. Despite the downs, they’re both here, and the both continue to battle across a variety of vehicle ranges.

Ford Motor Company (NYSE:F) is the only one of the two that actually pays a dividend, and it yields a solid 2.80%. There is, however, a mountain of debt that comes along with this company, and that is one big demerit when it comes to considering a purchase.

General Motors Company (NYSE:GM) actually has one very distinct advantage in that they took a bailout during the financial crisis. The bailout and restructuring of debt essentially gave General Motors Company (NYSE:GM) a very good clean slate with which to work from.

Analysts are incredibly bullish on the stock, and they believe that the company will manage a five-year growth rate of right around 12.4%.

Investor takeaway

All four of these companies are spectacular investments for the long-term. It doesn’t matter that the Japanese may have been experiencing some sales drops either.

I am bullish on the automotive business and firmly believe that any drops Honda and Toyota Motor Corporation (ADR) (NYSE:TM) have seen in the midsize range will be made back up over the coming years when Americans head back out to buy new cars, and when they start buying them more frequently.

The article Midsize Market Money Making: Auto Manufacturers originally appeared on Fool.com and is written by Ash Anderson.

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