The Ford Motor Company board of directors declared a first-quarter dividend of ten cents per share on the company’s outstanding Class B and common stock. This effectively doubles the dividend paid in each quarter of 2012.
Ford says through the first three quarters of 2012, the company increased the company’s liquidity position by $2 billion and generated 10 consecutive quarters of positive Automotive operating-related cash flow.
Stockholders, including Ford retirees and others who live on fixed incomes, depend on dividend payments. The Ford family owns about 70 million shares of Ford common stock. According to The Detroit News, the Ford family will get about $28 million in additional income from dividends.
Recovery on track
To put this achievement in some perspective, this follows $30 billion in losses from 2006 through 2008. In 2008 the company lost $13 billion - the biggest annual loss in the company's 105 year history.
The company suspended quarterly dividend payments in 2006. Ford resumed paying dividends to shareholders of record of Class B and common stock on Jan. 31, 2012.
Many analysts credit Ford's turnaround to a decision in 2006 to borrow $23 billion to help finance the company’s restructuring under the leadership of CEO Allan Mulally.
The first-quarter dividend is payable March 1, 2013 to shareholders of record on January. 30, 2013.
Read Ford pays first quarterly dividend since 2006