Detroit-Ford Motor Company will resume regular dividends in the fourth quarter, more than a year and a half later, after suspending payments early in the coronavirus pandemic.
Ford said a fourth-quarter dividend of 10 cents per share for outstanding common and class B shares will be paid to shareholders at the close of business on November 19. The company announced dividends when it announced its third quarter on Wednesday. Earnings that exceed Wall Street expectations.
Ford’s stock surged about 5% during overtime trading. Shares fell 2.7% on Wednesday to $ 15.51 per share.
“The strength of the business gives us the confidence to revive dividends at this point,” CFO John Lawler told reporters on Wednesday.
Laura said the company is confident that it has no capital constraints and can fund an aggressive turnaround plan called Ford +. The plan includes billions of dollars in investment and dividend payments for electric and self-driving cars.
According to Roller, the quarterly cost of dividends will be about $ 400 million.
Last year, a coronavirus pandemic caused automakers to shut down factories and dealers to stop the Covid epidemic, and Ford quickly cut dividends and increased cash.
General Motors, which cut dividends a month after Ford, hasn’t reinstated dividends.
Ford revives dividends in Q4
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