agent Entrepreneur logo
MenuMENU
SearchSEARCH

Ford's Debt Payment Means Dividend May Return as Soon as 2012

July 1, 2010
2 min to read


Ford Motor Co., which caught up yesterday on preferred stock dividends it missed for 14 months, may resume payouts on the common stock as soon as 2012, according to data compiled by Bloomberg.


The automaker still needs to pay off more of its approximately $27 billion in debt before resuming the dividend, officials and analysts said. Still, quarterly dividends of 5 cents a share could proceed in 2012, a year ahead of earlier projections, according to Bloomberg estimates based on the data.

Ad Loading...


Ford removed a key legal hurdle to the dividend by paying $255 million in deferred dividends on its Capital Trust II preferred stock, along with a $3.8 billion payment to a trust for union retirees. Now that those dividends are paid in full and restored, Ford is free to reinstate a dividend on its common shares and Class B shares owned by the Ford family. The size of the payments -- made ahead of schedule -- shows the carmaker is confident it can generate cash.


“If you have that kind of cash flow and you’re paying down debt, I could see a dividend maybe a year from now,” Bernie McGinn, president of McGinn Investment Management in Alexandria, Virginia. His firm owns 330,000 Ford common shares.


Ford eliminated its common-stock dividend on Sept. 15, 2006, when it was 5 cents a share. The company made its last payout on the Capital Trust II in January 2009 and missed payments starting in April of that year.


“Our priority is to continue to reduce debt and strengthen our balance sheet, and ultimately restore an investment-grade debt rating,” Mark Truby, a Ford spokesman, said in an e-mail. “As we make progress on these objectives, I’m sure our board will evaluate the stock dividend down the road.”

More Industry

Group photo of men outside storefront.
Industryby Hannah MitchellMay 28, 2026

Pennsylvania Dealership Under New Retailers

The sale of the Chrysler Dodge Jeep Ram store puts a family auto group on a leaner path as first-time dealers take the helm.

Read More →
Hallway with lockered wiring and computer
Industryby Lauren LawrenceMay 28, 2026

Battery Storage Takes Priority Over EVs

U.S. automakers are prioritizing battery energy stationary storage over electric-vehicle production as the consumer demand for EVs lags the rest of the world.

Read More →
Gray-scale photo of a line of Mini cars in a dealership parking lot
Industryby Hannah MitchellMay 27, 2026

Auto Dealers Feel Better But Not Great

A second-quarter Cox Automotive poll of franchised retailers and independents found better views of the current market after a good spring but anticipation of third-quarter storminess.

Read More →
Ad Loading...
Closeup photo of the front of a white car
Industryby Hannah MitchellMay 21, 2026

New-Vehicle Sales Picture Relative

A May forecast is complicated by last spring’s trade tariff effects on auto retail. Despite continued hard realities, many consumers took advantage of ways to bite the bullet.

Read More →
Nissan logo on front of building
Industryby Lauren LawrenceMay 21, 2026

Auto Group Acquires Third Nissan Rooftop

Iowa-based Coleman Automotive Group recently acquired its seventh dealership, McGrath Nissan, which it renamed Nissan of Elgin.

Read More →
Couple talking with auto salesman next to new car inside dealership
Industryby Hannah MitchellMay 20, 2026

April Less Affordable

Based on prices, reduced incentives and slower household income growth, consumers found it more challenging to buy new last month, Cox Automotive reported.

Read More →
Ad Loading...
Wooden people figures of different colors in a row, similar to board game pieces
IndustryMay 20, 2026

Building an Extraordinary F&I Agency

Work to determine your specialized talent, because that fact will determine everything about your agency’s future.

Read More →
Ingredient card, policies and procedures, fixed operations, variable operations, data security, audit
Industryby Jim GantherMay 19, 2026

Recipe for Compliance

The secret to both amazing barbecue and compliance is the same: understanding the basics and committing to a process.

Read More →
Photo of new Chevrolet Bolt parked on a beach
Industryby Hannah MitchellMay 14, 2026

EVs Getting More Attractive

A growing percentage of U.S. consumers are open to switching and fewer are adverse to the idea, according to a recently completed survey. That’s despite the end of a tax break.

Read More →
Ad Loading...
Benchmark bar graph showing April 2026 EV Sales
Industryby Lauren LawrenceMay 14, 2026

EV Sales Drop in April Following Surge

North American electric-vehicle sales were down 28% year-over-year, a sharp contrast from global EV sales growth of 6%.

Read More →
Ad Loading...