Due to improved liquidity, Ford Motor Co. has increased its quarterly dividend for common and Class B stock by 25 percent to 12.5 cents per share. Ford said in a statement that an increase in dividend reflects its strong performance in 2013, adding that its liquidity position improved by $3 billion through the third quarter.
The dividend is payable March 3 to shareholders of record at the close on Jan. 31, 2014. Ford reinstated its dividend in 2012 at 5 cents a share and doubled it to 10 cents in 2013. Ford’s shares have surged 19 percent in 2013 as the Standard & Poor’s 500 Index gained 30 percent.
"This increase in the dividend provides our shareholders with a regular, growing dividend that we believe is sustainable over an economic or business cycle," Ford chief financial officer Bob Shanks said in the statement.
Ford family members, including Executive Chairman Bill Ford, are the exclusive owners of the 70.9 million Class B shares, which is a class of stock that gives them 40 percent voting power. The increased dividend would pay the Ford family $35.45 million on those shares.