GM And Ford

**bassnpro1** · 07-16-2015, 11:22 AM

Both Auto stocks are approaching 52 week lows. GM is down 3+% today and now yielding 4.75% dividend. I realize this is mainly a product of their exposure to China, but I think that the bottom is close. I just got in a small position with GM and will continue to add more in the following weeks if it continues to stair step down. I don't need a quick return and I'm content with the dividend as long as it doesn't get cut. The big question is how bad is China? and how much worse is it going to get there?

I also see dividend stocks taking a small beating once the Fed raises interest rates, so there is that to consider in the future as well.

**boneil** · 07-16-2015, 01:14 PM

Thats how you do it.

Technically, you picked a beautiful buy spot. It was downgraded by Barclays to neutral with a price target to $36, today. They sight China as the reason. China has been an issue for many years. And yet things continue to be okay. Notice that it is also just a few days before earnings. CNBC was talking the auto group a few days ago. They were talking negatively saying everything good is priced in. When everyone is negative, and you have earnings coming, good things can happen. Because now those sellers on the Barclays report will want to get back in. Of course they need good earnings. And a stable forecast. And I think we all know GM isn't going anywhere. Been there done that. Our gov't bailed them out. With that dividend, I wouldn't sweat any sell offs and actually you should welcome it.