Ford May Bring Back Dividend

Ford Motor ($F) progressively cut its quarterly dividend from 30 cents per share to 10 cents to 5 cents, and it finally ditched it all together five years ago.

Thanks to the recent credit upgrades and union deal, the dividend may make a comeback. In my opinion the dividend isn’t why the stock is a good value, but it reflects the company’s remarkable turnaround.

My guess is that any dividend will start out pretty modest, perhaps eight or ten cents per share. Brian Johnson at Barclay’s Capital thinks it could be eight cents per share.

“Ford is doing all the right things and they sure haven’t gotten any credit for it from the Street,” said Gary Bradshaw, a fund manager at Hodges Capital Management in Dallas, who recently purchased 50,000 shares below $10 to increase his Ford holding to 250,000 shares. “That’s ridiculously cheap for a company whose outlook is improving.”

Posted by on October 25th, 2011 at 10:09 am

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.