Ford: We are moving toward a dividend

Ford CFO Louis Booth said the company may start paying shareholders a dividend before its credit reaches investment grade.

By TheStreet Staff Oct 26, 2011 2:54PM

By Ted Reed, TheStreetTheStreet

 

Ford (F) chief financial officer Lewis Booth says the automaker is moving toward paying a dividend.

 

Previously, Ford had said that it would like to reach investment grade before it paid a dividend. 

 

However, the step may not be necessary, given Ford's improving results. Now, Booth said on the company's earnings conference call Wednesday, investment grade "is not something we have to get to before we start paying a dividend.

 

"We may decide to pay before we get to investment grade," he said.

 

Booth would not be pinned down as to exactly when a dividend payout might begin. "We're not going to give out precise hard metrics," he said. "We just want to see a little bit of continued improvement in our business. We've made it pretty clear we'd like to see it sooner rather than later."

 

As to the amount of the dividend, Booth said, "You can expect us, when we do start, to start cautiously, we don't want to start and then be in a position we can't sustain the level we start at. The key is (to) maintain a sustainable level of dividend (so) we may be a little bit cautious when we start."


Chief executive Alan Mulally added that a dividend "has been a very high priority for us to have that be part of the plan, so clearly that's what's guiding us."


Related Articles

0Comments

DATA PROVIDERS

Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.

STOCK SCOUTER

StockScouter rates stocks from 1 to 10, with 10 being the best, using a system of advanced mathematics to determine a stock's expected risk and return. Ratings are displayed on a bell curve, meaning there will be fewer ratings of 1 and 10 and far more of 4 through 7.

124
124 rated 1
279
279 rated 2
471
471 rated 3
714
714 rated 4
642
642 rated 5
604
604 rated 6
614
614 rated 7
450
450 rated 8
303
303 rated 9
115
115 rated 10
12345678910

Top Picks

SYMBOLNAMERATING
ARCPAMERICAN REALTY CAPITAL PROPERTIES Inc10
BIDUBAIDU Inc10
CITCIT GROUP Inc NEW10
HPQHEWLETT PACKARD CO10
ITUBITAU UNIBANCO BANCO MULTIPLO S.A.10
More

VIDEO ON MSN MONEY

ABOUT

Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.

Contributors include professional investors and journalists affiliated with MSN Money.

Follow us on Twitter @topstocksmsn.