DETROIT – Ford Motor will reinstate its common dividend beginning within the fourth quarter, greater than a 12 months and a half after suspending the funds through the early days of the coronavirus pandemic.
The fourth-quarter dividend of 10 cents per share on excellent widespread and Class B inventory can be paid on Dec. 1 to shareholders on the shut of enterprise on Nov. 19, the corporate introduced Wednesday when it launched its third-quarter earnings that beat Wall Avenue’s expectations.
Ford shares jumped by about 5% throughout after-hours buying and selling. The inventory closed Wednesday down by 2.7% to $15.51 a share.
“The energy of the enterprise offers us the boldness to reinstate the dividend at this level,” CFO John Lawler instructed reporters Wednesday throughout a name.
Lawler stated the corporate just isn’t capital constrained and is assured it could actually finance an aggressive turnaround plan referred to as Ford+, which incorporates investing billions in electrical and autonomous autos, in addition to the dividend
The quarterly price of the dividend can be about $400 million, in accordance with Lawler.
Ford was fast to chop the dividend to shore-up money because the coronavirus pandemic prompted the automaker to shutter vegetation and dealerships final 12 months to cease the unfold of Covid-19.
Common Motors, which lower its dividend a month after Ford, has not reinstated its dividend.