Ford will recover dividends in the fourth quarter

DETROIT – Ford Motor will resume regular dividend payments starting in the fourth quarter, more than a year and a half after suspending payments in the early days of the coronavirus pandemic.

Ford said that a fourth quarter dividend of 10 cents per share on outstanding common and Class B shares will be paid to shareholders on December 1 following business day on November 19. The company announced a dividend on Wednesday when it posted its third quarter earnings. profit that beat Wall Street expectations.

Ford shares jumped about 5% during overtime trading. At the close on Wednesday, shares were down 2.7% to $ 15.51 a share.

“The strength of business gives us confidence that we can restore dividends at this stage,” CFO John Lawler told reporters in a phone call on Wednesday.

Lawler said the company is under no capital constraints and is confident it can fund an aggressive recovery plan it calls Ford +. The plan includes an investment of billions in electric and autonomous vehicles, as well as dividend payments.

Lawler said the quarterly dividend will be worth about $ 400 million.

Ford has rushed to cut dividends to bolster cash as the coronavirus pandemic forced the automaker to close factories and dealerships last year to stem the spread of Covid.

General Motors, which cut its dividend a month after Ford, did not recover its dividend.

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