Tuesday, November 27, 2012

Will Dividends Return to Ford?

Now that Ford (F) has signed a new contract with the UAW, investors may be in for a treat � their first dividend payment since 2006.

Barclays Capital analyst Brian Johnson wrote in a note published today that he believes the recent labor deal paves the way for the car maker to reinstitute a regular quarterly dividend. He predicts the company will pay dividends totaling�36 cents a share next year — starting with a payment of 8 cents a share payment in the first and second quarters of 2012 � and sees the payment ramping up through 2015.

Johnson�s note was enough to help Ford buck the decline by the broader stock market earlier today. At $11.60, the stock was up 3 cents a share, or 0.3% after m than 72 million shares changed hands.

Ford cancelled its shareholder dividend in 2006 as part of a major restructuring.

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