Ford May Reinstate Dividend

Published by: Mike Goldman on 20th Oct 2011 | View all blogs by Mike Goldman
ford logo.jpg

Ford May Reinstate Dividend

Ford Motor Company hinted Thursday that it may reinstate its shareholder dividend before its debt rating is restored to investment grade status, despite its previous assertion that it would wait.  Ford CFO Lewis Booth addressed Wall Street to update analysts on its newly signed labor agreement, and also dropped the dividend bombshell, surprising many who had taken the company at its word on its prior statements.

Ford does expect a debt upgrade in the coming months from both Moody's and Standard & Poor's due to its solid performance over the last few quarters and reduction of its overall outstanding debt.  It is not known at this time, however, whether the agencies will raise the automaker's credit rating all the way up to investment grade.  Ford suspended shareholder dividend payments back in September, 2006, before the entire industry was pummeled by the financial crisis.

“Our shareholders have been very patient and we will make a decision when think the company’s position allows it,” Booth said of the timing for restoring dividends.  S&P and Moody's have each said that they may upgrade Ford's credit rating soon after it reached a new collective bargaining agreement with the United Auto Workers, and a new deal was approved Wednesday.

Comments

0 Comments

     
Please login or sign up to post on this network.
Click here to sign up now.

Latest DT's

  • View DT's
    Here's a great bio that Full in Bloom did for the band Possessedhttp://fullinbloommusic.com/biography-possessed.html View DT's
    5 months ago by Geno
  • View DT's
    Rated: PG-13 In Theaters: January 24th Director: Stuart Beattie Starring: Aaron Eckhart, Bill Nighy, Yvonne ... View DT's
    7 months ago by dallaseste
  • View DT's
    Rated: PG-13 In Theaters: January 10th Director: Renny Harlin Starring: Kellan Lutz, Gaia Weiss, Scott Adkins View DT's
    7 months ago by dallaseste
  • View DT's
    Rated: R In Theaters: December 4th Director: Scott Cooper Starring: Christian Bale, Casey Affleck, Zoe Saldana, Sam ... View DT's
    7 months ago by dallaseste
  • View DT's
    Rated: PG-13 In Theaters: December 13th Director: Peter Jackson Starring: Ian McKellen, Martin Freeman, Richard ... View DT's
    7 months ago by dallaseste
  • View DT's
    Rated: R In Theaters: January 3rd Director: Gregory Plotkin Starring: Andrew Jacobs, Jorge Diaz, Gabrielle Walsh View DT's
    7 months ago by dallaseste
  • View DT's
    Rated: TBD In Theaters: February 7th Director: George Clooney Starring: George Clooney, Matt Damon, Bill Murray, Cate ... View DT's
    7 months ago by dallaseste
  • View DT's
    Rated: PG-13 In Theaters: January 17th Director: Tim Story Starring: Ice Cube, Kevin Hart, John Leguizamo, Bruce ... View DT's
    7 months ago by dallaseste
  • View DT's
    Rated: R In Theaters: January 17th Directors: Matt Bettinelli-Olpin, Tyler Gillett Starring: Allison Miller, Zach ... View DT's
    7 months ago by dallaseste

Top Authors

Subscribe