Ford Raises Dividend By 25%

Good news from Ford ($F). The automaker sweetened its dividend by 25%. The quarterly dividend will rise from 10 cents to 12.5 cents per share. That’s 50 cents on the year.

Ford said its dividend increase reflects strong 2013 performance and its plans going forward and is consistent with the company’s One Ford goal of delivering profitable growth for all stakeholders.

“Our capital strategy continues to be focused on financing our One Ford plan, further strengthening our balance sheet and providing attractive returns to our shareholders,” said Bob Shanks, chief financial officer, Ford Motor Company. “This increase in the dividend provides our shareholders with a regular, growing dividend that we believe is sustainable over an economic or business cycle.”

Through the first three quarters of 2013, Ford increased its liquidity position by $3 billion and has extended to 14 the number of consecutive quarters of positive Automotive operating-related cash flow.

Two years ago, Ford restored its dividend at five cents. Last year, they doubled it to ten cents, and now we’re at 12.5 cents. The stock closed yesterday at $15.54, so the new dividend works out to a yield of 3.22%. Shares of Ford are currently up about 2% today.

Posted by on January 9th, 2014 at 10:31 am


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