In another sign of its success, Ford has announced that it will be paying out a quarterly dividend, the first time it will do so in over five years. The five-cents-a-share dividend will begin on March 1, 2012.

According to The Detroit Free Press, the move will cost Ford about $200 million per quarter. Ford is the first Detroit carmaker to pay a dividend on common stock since General Motors suspended its dividend in 2008. GM has been paying dividends on preferred stock this year.

Ford's stock remains just below investment grade, but Ford officials think resuming paying a dividend should help signal the company's financial strength.
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Ford Board of Directors Reinstates Quarterly Stock Dividend
  • Ford to pay a quarterly dividend of 5 cents per share
  • Business performance and balance sheet improvements allow Ford to resume regular payments
  • Dividend begins at level sustainable through economic cycles

DEARBORN, Mich., Dec. 8, 2011 – The Board of Directors of Ford Motor Company today declared a quarterly dividend of 5 cents per share.

"We have made tremendous progress in reducing debt and generating consistent positive earnings and cash flow," said Bill Ford, executive chairman, Ford Motor Company. "The board believes it is important to share the benefits of our improved financial performance with our shareholders. We are pleased to reinstate a quarterly dividend, as it is an important sign of our progress in building a profitably growing company and our confidence in the future."

Lewis Booth, Ford executive vice president and chief financial officer, said the company's strong liquidity and balance sheet improvements provide the underlying financial strength to resume paying a quarterly dividend.

"Building a strong balance sheet that supports our growth plans remains a core part of our One Ford strategy," said Booth. "We have demonstrated our capability to finance our plans and we are confident that we can begin to pay a dividend that will be sustainable through economic cycles."

The dividend is payable March 1, 2012, to shareholders of record of Class B and common stock on Jan. 31, 2012.