Ford today declared a 5-cent quarterly dividend

Article by Christian A., on December 9, 2011

A 5-cent quarterly dividend will be given to Ford Motor Co. shareholders on March 1 – their first payout since September 2006. Ford, the second-largest U.S. automaker, makes this move after it reported earnings of $1.65 billion in the quarter that ended in September. This is the tenth straight quarter that Ford has been profitable.

Ford has recently entered a four-year deal with the United Auto Workers that affects 40,600 of its hourly workers in the U.S. In a statement, Ford said that this dividend will be given to shareholders of record on Jan. 31.

In this statement, Executive Chairman Bill Ford said that the board considers it important to share with shareholders the gains that it has had from the improvements in its financial performance. He added that providing dividends is an “important sign” of progress in a company that increases its profits as well as its confidence.

Chief Executive Officer Alan Mulally was able to revive Ford by concentrating on the fuel economy and quality of its new models like the Fiesta subcompact and Explorer sport-utility vehicle, which was redesigned. In the past couple of years, Ford has recorded earnings of $9.28 billion.

It had lost $30.1 billion during the period from 2006 through 2008 with the drop in sales being followed by the global financial crisis. In New York, Ford’s shares fell by 3% to $10.75 at its closing.

Shares fell 36% this year after increasing 68% in 2010. In a recent conference call, Chief Financial Officer Lewis Booth said that this payout will cost Ford about $200 million a quarter. Booth said that Ford aims to avoid reducing the dividend if the economy suffers like in the past. But he asserts that Ford has significantly restructured the company and its break-even is lower than it had been in the past. [source: Autonews]

If you liked the article, share on:

Topics: ford, united states



It’s a given that Sports Utility Vehicle could never take on a supercar. A Mercedes G-Class for instance, or even a Mitsubishi Outlander, would find it hard to outperform a...
by - March 19, 2018
BMW has great news as they have recently launched a 2018 X2 sDrive28i in the United States. And if you do not know what that means, it basically is a...
by - March 19, 2018
Earlier this week, we talked about Volkswagen’s plans to halt the production of the US spec Passat for a few weeks during spring. And now, we just learned new things...
by - March 17, 2018
In the past couple of months, there have been a number of special edition McLarens that have been released in the past few months. Some of these include the 720S...
by - March 16, 2018
The Lamborghini Huracan LP580-2 has been out in the market for about 2 years now, with the last number in the model’s name indicating that the vehicle has a two...
by - March 16, 2018