By Dow Jones Business News,
January 09, 2014, 08:55:00 AM EDT
Ford Motor Co. ( F ) increased its quarterly dividend by 25%, following a sharp selloff of the auto maker's shares since
it warned of weaker profits in 2014.
The company raised the payout to 12.5 cents from 10 cents. The increase should cost Ford an additional $97 million a
The dividend boost comes after Ford last month warned its 2014 profits won't match 2013's performance because of
higher costs and a currency devaluation. The warning marked a shift from a period of rapid growth for U.S. auto makers
since the industry's near collapse in 2009 to a new era of margin pressures and market-share wars.
That announcement also sparked a selloff of Ford shares, which highlighted U.S. auto-executive and investor beliefs
that record earnings in 2012 and 2013 owed much to low borrowing costs, a strong yen that hurt Japanese exports, stable
gasoline prices and pent-up demand from consumers emerging from recession.
A year earlier, Ford doubled its quarterly dividend to 10 cents from five cents, citing a solid balance sheet at the
time. It restored its quarterly dividend at the five-cent rate in 2012.
On Thursday, the company said it increased its liquidity position by $3 billion through the first three quarters of
Ford Shares rose 1% premarket to $15.70. As of Wednesday's close, the stock was down 6.5% in the past three months.
Write to Ben Fox Rubin at email@example.com
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