Ford Doubles Dividend - Yield = 2.9%
Ford Doubles Dividend
Excerpt:
Ford (NYSE: F ) announced today that it will increase its quarterly dividend to $0.10 per share, double what it paid out in each quarter of 2012. At the automaker's current share price of $13.80, this news moves the company's annual dividend yield to approximately 3%.Comment: My only auto stock ( and I don't have much of it!).
I don't own any automakers but I've been considering Ford. My father has 50 years of investing experience, and he seems to think the small, regional banks (and Ford and US Steel..which is already up 13% since we discussed this) will do well in 2013.
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WSJ on 1/11/13: For Sale: Used Ford, Careful Owner:
ReplyDeleteAnalysts expect cash flow from operations to rise by half this year to just under $10 billion, according to FactSet. Capital expenditure is pegged at $5.5 billion. That leaves plenty of room for the roughly $1.5 billion that the new dividend requires.
The annual 40-cents-a-share payout gives Ford's stock a dividend yield of 2.9%, taking it from a discount to the S&P 500 to a premium. This ought to tempt some more income-oriented money managers.