NEW YORK: Ford shares jumped 2.4 percent yesterday after the top US carmaker said it would double its dividend for this year.
The change means holders of the company’s Class B and common stock would receive a quarterly dividend of 10 cents per share instead of five cents per share.
Ford said the dividend hike was possible thanks to the success of its restructuring plan, called the “One Ford Plan.”
“Our ability to double our dividend in one year is a testament to our One Ford plan, which has enabled us to maintain a solid balance sheet, while at the same time growing our business to provide our shareholders with more return on their investments,” said Bob Shanks, chief financial officer, Ford Motor Company.
Ford’s most recently quarterly earnings came in at $1.6bn, better than expected. The number two US carmaker’s 2012 US sales rose five percent from 2011 to nearly 2.3 million vehicles.
But the company said in October that it would shut three European facilities due to sagging auto demand in that region. AFP
