After Five Year Absence, Ford’s Dividend Will Return

Ford ($F) just announced that it’s going to pay a dividend of five cents per share. The dividend is payable March 1, 2012 to shareholders of record on Jan. 31, 2012.

The Board of Directors of Ford Motor Company today declared a quarterly dividend of 5 cents per share.

“We have made tremendous progress in reducing debt and generating consistent positive earnings and cash flow,” said Bill Ford , executive chairman, Ford Motor Company. “The board believes it is important to share the benefits of our improved financial performance with our shareholders. We are pleased to reinstate a quarterly dividend, as it is an important sign of our progress in building a profitably growing company and our confidence in the future.”

Lewis Booth , Ford executive vice president and chief financial officer, said the company’s strong liquidity and balance sheet improvements provide the underlying financial strength to resume paying a quarterly dividend.

“Building a strong balance sheet that supports our growth plans remains a core part of our One Ford strategy,” said Booth. “We have demonstrated our capability to finance our plans and we are confident that we can begin to pay a dividend that will be sustainable through economic cycles.”

A five-cent dividend is a puny portion of Ford’s annual profit. The company will earn about $1.87 per share this year and it’s expected to earn another $1.62 per share next year.

From 2002 to early 2006, Ford had paid a quarterly dividend of 10 cents per share. Then Ford cut it five cents for one quarter; then they got rid of it entirely.

Posted by on December 8th, 2011 at 12:13 pm

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