agent Entrepreneur logo
MenuMENU
SearchSEARCH

Ford Expects to Resume Dividend

September 21, 2011
2 min to read


Ford Motor Co., which hasn’t paid a dividend in five years, expects to resume paying one in the “relatively near future,” and is no longer tying such a move to achieving an investment-grade debt rating.


“As our balance sheet continues to improve, we expect to resume paying a dividend,” Controller Bob Shanks said today at the Citi Global Industrials Conference in Boston. “We expect this to occur in the relatively near future.”

Ad Loading...


Ford suspended its dividend in September 2006. Chief Financial Officer Lewis Booth said at a Sept. 9 investor conference that Ford won’t resume paying a dividend until after returning to an investment-grade credit rating. Standard & Poor’s rates Ford debt at BB-, three levels below investment grade, with a positive outlook, reported Bloomberg.


“We do not need to be investment grade before resuming our dividends,” Todd Nissen, a Ford spokesman, said in an e-mailed statement after today’s presentation.


The second-largest U.S. automaker earned $4.95 billion in the first half of the year, as fuel-efficient models like the Fiesta subcompact attracted buyers. Ford’s U.S. light-vehicle sales are up 12 percent this year through August, ahead of the industrywide gain of 10 percent.


The automaker is seeking to lower labor costs in contract talks with the United Auto Workers. The current contract covering Ford’s 41,000 U.S. hourly workers expired Sept. 14 and was extended. General Motors Co. reached a tentative agreement with the UAW Sept. 16, subject to ratification vote by workers.


Chief Executive Officer Alan Mulally raised prices this year to offset some of the $4 billion in higher costs the company expects in 2011, including manufacturing spending.

Ad Loading...


Ford earned $9.28 billion in the past two calendar years after $30.1 billion in losses from 2006 through 2008. The automaker borrowed $23.4 billion in late 2006, putting up all major assets including its blue oval logo as collateral. That helped Ford avoid the bankruptcies and bailouts that befell the predecessors of GM and Chrysler Group LLC.


Ford slid 45 cents, or 4.3 percent, to $9.97 at 4 p.m. in New York Stock Exchange composite trading. The shares have fallen 41 percent this year.

More Industry

F&Iby Lauren LawrenceFebruary 27, 2026

Price Driving Insurance Churn

Over half of insurance holders ages 18 to 29 reported to be 'somewhat' likely to change providers in the next 90 days, according to CivicScience, which found that interest was lower among older age groups.

Read More →
Industryby Lauren LawrenceFebruary 26, 2026

AI Drives Dealer Website Traffic

Total visits to dealer websites from generative artificial intelligence platforms grew more than 15 times year-over-year, signaling a shift in how many consumers shop for cars online.

Read More →
Industryby Hannah MitchellFebruary 26, 2026

Automakers Tops in Fuel Economy

In the U.S., Honda has the most efficient gas-electrified combo lineup while Tesla beats all automakers in annual EPA ranking as brands built their alternative-fuel offerings.

Read More →
Ad Loading...
F&Iby Lauren LawrenceFebruary 25, 2026

Report Finds Year-End F&I Strength

Deal volume ebbed and flowed throughout 2025, but product performance remained steady, according to automotive technology and data intelligence solutions provider StoneEagle.

Read More →
Industryby Hannah MitchellFebruary 24, 2026

Overall Consumer Confidence Up

Americans’ view of present business conditions, the labor market and family finances, though, are still in the dumps, and if they plan to buy cars, many target used units.

Read More →
Auto Financeby Lauren LawrenceFebruary 23, 2026

Auto Loan Forecast Bucks Market Trend

Auto loan originations rose over 6% year-over-year in the third quarter of 2025, but TransUnion predicts a slight decline in auto loan growth this year, making it an outlier in the company's overall lending forecast.

Read More →
Ad Loading...
F&Iby Hannah MitchellFebruary 23, 2026

Some Auto Brands Cheaper to Insure

A new top 10 list ranks the least expensive for average full insurance coverage on a clean driving record and high driver credit scores.

Read More →
Industryby StaffFebruary 20, 2026

Learn to Manage the Mayhem at Agent Summit

Rob Mancuso – president of Mancuso Automotive – will present a Keynote at the 2026 event.

Read More →
Fixed Opsby Hannah MitchellFebruary 20, 2026

Auto Recalls Sank Last Year

2025 Sedgwick data indicate that the number of vehicles affected fell to its lowest point in more than a decade.

Read More →
Ad Loading...
Industryby Lauren LawrenceFebruary 19, 2026

Affordability Leads Top-Rated List

Edmunds’ editorial team tested 300-plus vehicles to help determine the Top Rated Awards for 2026, and one brand stood out with multiple rankings, including Best of the Best.

Read More →