Famous automaker Ford Motor Company ( F ) on Thursday announced its board of director has approved a plan to reinstate its quarterly dividend payout, following a five-year hiatus.
The move follows an announcement bank in June that the company could resume dividend payouts in the near term. Ford had suspended its payouts in 2006 in an effort to conserve cash and convince its creditors that it was serious about overhauling its business.
The new dividend of 5 cents per share will be paid on March 1, 2012, to shareholders of record as of Jan. 31, 2012.
Ford shares, which were halted prior to the announcement, were mostly flat in early afternoon trading Thursday.
The Bottom Line
While not so bullish at the onset of our coverage, the company is certainly a brand we will have on our radar moving forward from a dividend perspective. Based on last night's closing stock price of $11.08, the company will have a 1.81% dividend yield. The stock has technical support in the $9 price area. If the shares can firm up, we see overhead resistance around the $12-$13 price levels.
Ford Motor Company ( F ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.1 out of 5 stars.
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