Ford (F) to Reinstate Dividend Soon, Here's Some Potential Numbers...
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Rating Summary:
12 Buy, 23 Hold, 4 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 7 | Down: 5 | New: 25
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Ford (NYSE: F) has famously outlined plans to reinstate its quarterly dividend to shareholders. Conclusion of contract talks with the UAW is bringing that possibility even closer to fruition.
But how much will Ford look to pay out for it's return to returns? One Barclays Capital analyst has an idea.
The firm's Brian Johnson noted Ford has historically paid out 33 percent of earnings, and also has averaged a yield of 2.6 percent in the past. Taking that into consideration, Barclays sees Ford paying 8 cents per share in the first and second quarters of 2012, and ramping the payment 25 percent to 10 cents per share in the third and fourth quarters. Total annual payout would be a 36 cent payout in the first year, or about $1.35 billion paid in the first year based on 3.744 billion common shares outstanding. Click here for more color from the report.
At Ford's current price of about $11.70, that is a yield of 3.1 to 3.2 percent, above the historical average for the company.
Ford recently said the dividend will be reinstated "very soon."
Shares are up 1.1 percent Thursday afternoon.
But how much will Ford look to pay out for it's return to returns? One Barclays Capital analyst has an idea.
The firm's Brian Johnson noted Ford has historically paid out 33 percent of earnings, and also has averaged a yield of 2.6 percent in the past. Taking that into consideration, Barclays sees Ford paying 8 cents per share in the first and second quarters of 2012, and ramping the payment 25 percent to 10 cents per share in the third and fourth quarters. Total annual payout would be a 36 cent payout in the first year, or about $1.35 billion paid in the first year based on 3.744 billion common shares outstanding. Click here for more color from the report.
At Ford's current price of about $11.70, that is a yield of 3.1 to 3.2 percent, above the historical average for the company.
Ford recently said the dividend will be reinstated "very soon."
Shares are up 1.1 percent Thursday afternoon.
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