+- Dividend Growth Forum (http://DividendGrowthForum.com)
+-- Forum: Dividend Growth Investing (http://DividendGrowthForum.com/forumdisplay.php?fid=15)
+--- Forum: Individual Dividend Growth Stocks (http://DividendGrowthForum.com/forumdisplay.php?fid=35)
+--- Thread: Ford's 2016 Dividend? (/showthread.php?tid=1457)
Ford's 2016 Dividend? - Kerim - 01-12-2016
(01-12-2016, 06:56 PM)rapidacid Wrote: Ford Motor Declares Supplemental Cash Dividend and First Quarter Dividend
Ford Motor (NYSE:F) declares $0.15/share quarterly dividend, in line with previous.
Forward yield 4.67%
Payable March 1; for shareholders of record Jan. 29; ex-div Jan. 27.
Additionally, the board declared a supplemental dividend of $0.25/share payable along with regular dividend.
Does this strike anyone else as odd?
Since re-instituting the dividend in 2012, F has raised the dividend each year in Q1. If they had skipped this supplemental dividend, the same money could have funded a quarterly raise to 18 cents per share for the next two years. That would have represented a 20 percent raise, and cost the company a lot less in the short term.
Why would they forego a small annual raise in favor of a large one-time payout? I suppose the answer might be that they have low confidence in future earnings, and don't want to lock themselves into a higher dividend that they'll need to reduce or cut later?
I know I shouldn't expect dividend aristocrat behavior from the likes of Ford, but even so, this is head-scratcher to me.
RE: Ford's 2016 Dividend? - rapidacid - 01-13-2016
I do not hold F and have not done much research on them but my inclination is that they're just going to have a screwy dividend policy and it's probably not going to be a nice + neat 4 quarters and a bump package.
Looking at their dividend history the last 12 quarters of 4 + bump certainly seem the exception rather than the rule.
If they did this special dividend and then reduce the normal dividend in the nearby future that would be a serious WTF
RE: Ford's 2016 Dividend? - DividendGarden - 01-13-2016
(01-12-2016, 09:32 PM)Kerim Wrote:(01-12-2016, 06:56 PM)rapidacid Wrote: Ford Motor Declares Supplemental Cash Dividend and First Quarter Dividend
Ford Motor (NYSE:F) declares $0.15/share quarterly dividend, in line with previous.
Forward yield 4.67%
Payable March 1; for shareholders of record Jan. 29; ex-div Jan. 27.
Additionally, the board declared a supplemental dividend of $0.25/share payable along with regular dividend.
Does this strike anyone else as odd?
That was the first thing I thought when I saw this. A dividend raise, a special dividend, an increased buyback...seems like optics to me.
RE: Ford's 2016 Dividend? - rapidacid - 01-13-2016
http://theconservativeincomeinvestor.com/2016/01/13/dont-buy-ford-stock-for-a-long-term-investment-portfolio/
RE: Ford's 2016 Dividend? - Roadmap2Retire - 01-13-2016
Looks like the car industry is feeling very bullish.
GM just raised div by 6%
http://www.usatoday.com/story/money/cars/2016/01/13/gm-boosts-2016-profit-outlook-hikes-dividend/78730222/
Magna is expecting a 15.7% increase in revenue this year
http://finance.yahoo.com/news/magna-forecasts-production-sales-rise-121618957.html
RE: Ford's 2016 Dividend? - EricL - 01-13-2016
(01-13-2016, 10:58 AM)rapidacid Wrote: http://theconservativeincomeinvestor.com/2016/01/13/dont-buy-ford-stock-for-a-long-term-investment-portfolio/
I was going to post this same article.
I agree with his thoughts, don't buy a cyclical company at peak profits.
RE: Ford's 2016 Dividend? - DividendGarden - 01-13-2016
(01-13-2016, 10:58 AM)rapidacid Wrote: http://theconservativeincomeinvestor.com/2016/01/13/dont-buy-ford-stock-for-a-long-term-investment-portfolio/
I love reading Tim's writings.