Ford Doubles Dividend

Excellent news from Ford ($F) today. The company is doubling its quarterly dividend from five cents to 10 cents per share. The dividend is now at a seven-year high.

Ford last paid a 10-cent dividend in June 2006. Shortly after that, the company reduced and later suspended its dividend as it struggled to avoid bankruptcy. It restored dividends in March 2012.

“We had thought that a dividend increase was likely but this announcement is larger than we expected,” RBC Capital Markets analyst Joseph Spak said.

“Today’s announcement shows strong confidence in their outlook, balance sheet and liquidity.”

Everything is moving in the right direction for Ford. Going by yesterday’s close, Ford yields 2.97%. The stock has been as high as $13.94 today which is an 18-month high. Look for a good earnings report soon.

Posted by on January 10th, 2013 at 11:28 am

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