Ford’s stock slump sends dividend yield to highest since 2001
Ford Motor Co.’s (F.N 0.27%) plummeting share price has sent its dividend yield to the highest in 17 years, an indication of just how rich a disbursement the company is paying during troubled times.
The automaker’s stock fell to US$9.20 on Tuesday, the lowest close since August 2012. That means Ford’s 15 cents U.S. a share quarterly dividend currently has an annualized yield of 7.93 per cent, a level last seen in September 2001.
Wall Street has warned that Ford may have to pare back its rich dividend — the most generous among its automotive peers — as earnings evaporate overseas and the company initiates a restructuring that it’s said may cost US$11 billion and take as much as five years. The company has insisted it’ll maintain the payout.
Representatives for Ford didn’t immediately respond to a request for comment.
Source: BNN Bloomberg
https://www.bnnbloomberg.ca/ford-s-stock-slump-sends-dividend-yield-to-highest-since-2001-1.1146460
