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Will Subprime Loans Take the Auto Industry Down?

The last few years have been pretty good for the automakers. Many consumers had put off buying new automobiles during and after the Great Recession. But as jobs, wages and overall economic health returned, consumers starting buying again. Sales of cars skyrocketed and boosted the fortunes for automakers like Ford (F ) and General Motors (GM ).

It also increased their dividend potential. The once-dead money sector was now an income hunter’s paradise.

Despite the recent rosy outlook, the automakers – and their juicy dividends – could be facing a big-time problem. An issue it’s eerily reminiscent of is the cause of the Great Recession and the credit crisis. For investors, the pending subprime auto loan issue could be a significant derailment to the auto industry and stocks within that sector.

Find the dividend yield of the automobile industry here. You can also check out the dividend yield of major auto manufacturers on this page.

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