The $1.8 Billion FORD repaid Thursday means that the secured loan is fully paid off. The Blue Oval and other FORD assets are no longer being used as collateral to any secured loan. Also, the restriction on the payment of dividends due to the terms of the secured loan are no longer in effect.
The remaining short term debt due in 2011 was approximately $700 Million as of the 2Q2011 SEC filing. This means that FORD should end 2011 with, at most, $11.5 Billion in automotive debt.
Additionally, FORD's claim that it wants $10 Billion in automotive debt by 2015 is supported by its automotive debt maturities on page 37 of the 2Q2011 SEC filing: %490 Million due in 2012; $716 Million due in 2013; $438 Million due in 2014.
All good news for FORD shareholders.
Ford is going to want a large cash reserve in case auto sales tank in the future. Once they have built a large reserve in two or three years with higher earning I think a $1 per year would be reasonable. For now I think $ .40 per year would be what I would expect. That is very affordable for Ford and would allow the to continue to build cash reserves, expand their production world wide while continuing to revamp their car and truck lines. The best time to announce a new dividend would be the same day early next year they announce the bonus check for production worker. It would be hard for the UAW to complain about a $ 10 per quarter dividend on the same day it is announced that each worker is getting a several thousand dollar check.
As much as we'd all like to see a $1 dividend, IMO that may be a bit optimistic. A $1 dividend would require a payout of nearly a billion dollars per quarter on the common stock alone.
Initially, I think we'll see something in the neighborhood of $0.30-$0.40 per year(7.5-10 cents per quarter).
I assume you refer to the filing...
A couple of stipulations have to be met before a dividend can be paid again:
1. Certain loans have to be paid off.
2. The debt has to return to investment-grade status
Once those stipulations have been satisfied, Ford is free to resume its dividend.