Ford doubles dividend to 10 cents

Ford Motor Co.

Last Updated at 21 Mar 2018, 19:59 GMT *Chart shows local time Ford Motor Co. intraday chart
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US carmaker Ford has doubled its quarterly dividend to 10 cents per share, sending its share price higher.

Ford only resumed paying a dividend in March - of 5 cents a quarter - after halting the payment to shareholders for more than five years because of financial problems.

The company said the payout was part of its goal of delivering profitable growth for all stakeholders.

It said the last time it paid a 10 cent dividend was in June 2006.

Shares in Ford ended 2.7% higher on Wall Street.

'Strong confidence'

The credit crunch and global recession hit the car industry hard, although Ford was the only one of the big three US car firms which did not go bankrupt.

The company said it was able to increase the dividend because of a "strong balance sheet, increased liquidity and positive business performance".

RBC Capital Markets analyst Joseph Spak said the doubling of the dividend had taken him by surprise.

"We had thought that a dividend increase was likely but this announcement is larger than we expected.

"Today's announcement shows strong confidence in their outlook, balance sheet and liquidity."

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