Ford Motor Company (F) investors haven’t exactly had a smooth ride over the past 10 years. The stock has bounced around more than a Buick with blown shocks. But that doesn’t mean investing in the company back in 2014 wouldn’t have paid off.
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Launched in 1903, the Ford Motor Company was Henry Ford’s third attempt to create a successful automotive business. Within five years, in 1908, the company had its first big win with the Model T, which combined efficiency, reliability, and a reasonable price. That car created such demand that Ford opened a new factory in Michigan that revolutionized the car industry with the first assembly line for automobiles. This gave Ford an advantage over his competitors and led to great success.
Like a savvy investor, Ford pumped much of that success back into his company. Employees soon made a living wage at $5 per hour, elevating many low-skilled workers into the middle class, and in the 1920s, Ford bought rival Lincoln Motor Company. By 1930, Ford dominated the market, with two out of every three cars on the road being a Model T.
Over the remainder of the 20th century, Ford Motor Company continued to expand, opening factories around the world and buying other auto brands, such as Mazda and Land Rover.
The Ford Motor Company stock went public for $64.50 per share on January 18, 1956, and first traded on the New York Stock Exchange in March of that year. Since then, the stock has split six times, most recently in 1994.
While the stock price had a steady rise for the last part of the ’90s, shortly afterward, volatility hit for several years. And, as with the market as a whole, the pandemic took its toll on Ford, dropping the stock to a 10-year low of under $4 per share in March of 2020. But the stock price roared back, reaching a high of over $18 a share in 2022.
All that said, if you had invested $1,000 on April 15, 2014, and remained on board for the ride to today, your shares would be worth $1,264.73. That’s an annual rate of return of 2.37%, or a total return of 26.47%. For perspective, if you had invested that same $1,000 in the Nasdaq, your investment would have grown by almost 429% to $5,289.10.
But perhaps it’s best to compare Ford’s stock to four of its industry rivals. Here is what your $1,000 April 15, 2014 investment would be worth 10 years later for other popular car brands.
Stock | Percent Change | April 15, 2024 Worth |
Honda Motor (HMC) | 41.71% | $1,417.09 |
General Motors (GM) | 76.14% | $1,761.43 |
Toyota Motor Corp. (TM) | 173.83% | $2,738.28 |
Tesla, Inc. (TSLA) | 1,159.08% | $12,590.82 |
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This article originally appeared on GOBankingRates.com: Here’s How Much a $1,000 Investment in Ford Stock 10 Years Ago Would Be Worth in 2024
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.