Investors: Ford To Resume Quarterly Dividends
According to The New York Times, Ford is feeling good enough about the current health of their company that they are going to resume dishing out quarterly dividends to investors for the first time since 2006.
The company’s directors approved paying out 5 cents a share on March 1, 2012 and will total around $200 million dollars.
“We have made tremendous progress in reducing debt and generating consistent positive earnings and cash flow,” William Clay Ford Jr., the company’s executive chairman, said in a statement. “The board believes it is important to share the benefits of our improved financial performance with our shareholders.”
As the article states, Ford was the only American automaker to avoid bankruptcy during the economic collapse, even though their stock sunk as low as $1.01 a share.
DEARBORN, Mich., Dec. 8, 2011 – 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.”
The dividend is payable March 1, 2012, to shareholders of record of Class B and common stock on Jan. 31, 2012.