Ford to reinstate dividend in the fourth quarter

DETROIT — Ford Motor will reinstate its standard dividend beginning in the fourth quarter, additional than a yr and a half soon after suspending the payments for the duration of the early times of the coronavirus pandemic.

Ford claimed the fourth-quarter dividend of 10 cents for every share on superb widespread and Course B stock will be compensated on Dec. 1 to shareholders at the close of enterprise Nov. 19. The organization declared the dividend Wednesday when it introduced its 3rd-quarter earnings, which beat Wall Street’s anticipations.

Ford shares jumped by much more than 9% all through just after-hours trading. The inventory shut Wednesday down by 2.7% to $15.51 a share.

“The power of the business provides us the self confidence to reinstate the dividend at this level,” CFO John Lawler informed reporters Wednesday for the duration of a contact.

Lawler reported the corporation is not capital-constrained and is assured it can finance an intense turnaround strategy, which it calls Ford+. The system incorporates investing billions in electric and autonomous autos as effectively as paying out the dividend.

The quarterly price of the dividend will be about $400 million, in accordance to Lawler.

Ford was quick to slice the dividend to shore up dollars as the coronavirus pandemic prompted the automaker to shutter plants and dealerships very last 12 months to end the spread of Covid.

Basic Motors, which slice its dividend a thirty day period following Ford, has not reinstated its dividend.