Ford (F) Rewards Investors With a Reinstated Dividend

Ford (NYSE: F) just announced the reinstatement of its highly anticipated quarterly dividend. Shares continue to gain following the news and have now gone into the green after the stock was halted down 3.1 percent at $10.73 per share, ahead of the announcement.

The auto giant will now pay out a dividend of $0.05 per share each quarter starting in the first quarter of 2012. The first dividend is payable March 1, 2012, to shareholders of record of Class B and common stock on January 31, 2012.

Ford canceled its dividend back in 2006, paying the last dividend in July of that year. Although the company's previous dividend was also $0.05 per share, the yield was substantially higher at 2.85 percent, the current yield is 1.9 percent. The company's last dividend, back in July of 2006, was cut 50 percent from its previous dividend of $0.10 per share.

The next upcoming and major catalyst for the company maybe the announcement of the company’s new chief executive officer. Ford’s current CEO Alan Mulally is scheduled to leave the company in 2014.

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