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DETROIT — Ford Motor will reinstate its common dividend beginning within the fourth quarter, greater than a yr and a half after suspending the funds through the early days of the coronavirus pandemic.
Ford mentioned the fourth-quarter dividend of 10 cents per share on excellent widespread and Class B inventory will probably be paid on Dec. 1 to shareholders on the shut of enterprise Nov. 19. The corporate introduced the dividend Wednesday when it launched its third-quarter earnings, which beat Wall Avenue’s expectations.
Ford shares jumped by greater than 9% 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 mentioned the corporate just isn’t capital-constrained and is assured it might finance an aggressive turnaround plan, which it calls Ford+. The plan consists of investing billions in electrical and autonomous autos in addition to paying the dividend.
The quarterly price of the dividend will probably be about $400 million, in response to 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 yr to cease the unfold of Covid.
Basic Motors, which lower its dividend a month after Ford, has not reinstated its dividend.
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