Well .Unless they're going to pay a 10% dividend. I'd rather them work on getting the stock price back up. Then worry about a Dividend.The way this stock has been acting they announce a dividend it will drop back to $5. And I can't afford tht.
I don't know--I wouldn't mind a dividend and Ford's stock price is more related to systemic effects (i.e the economy) which they can't control. The price will turn up when confidence is restored in America and this will only occur when Obama is out of office as no one has any faith in his leadership anymore.
I agree a Dividend by an a cash-struggling company is more a "stock PR" move than a wise financial choice.
Look into 5-year cash balances versus 5-year debt paydown. Much of the "debt reduction" has also been, for obvious reasons, a reduction in cash and cash equivalents.
F Cash and Equilvanets -31.48%
F Long Term Debt -36.18%
A dividend is a signal of "Excess" cash...that is, cash that does not have a "better" use for internal positive-NPV projects. Are we really saying that there are no growth prospects of internal projects anymore???
FORD Total Stockholder Equity has been increasing at the rate of over $2 Billion per quarter for the last ten quarters. Cash levels have been relatively steady while continuing to pay down debt at a rate of more than $2 Billion per quarter. Debt repayment for the next three years will be at the rate of approximately $125 Million per quarter.
All this is with capital investment fully funded. At the current rate, cash will start to build at the rate of about $2 Billion per quarter. Paying a dividend now makes sense.
You do realize five years ago is when dividend ended just after investment grade ended the year before, right? Getting back to a position where they were BEFORE things got really ugly in the down turn of '08 & '09. Point is they have returned TO the point they were at when they lost investment grade and we have positive momentum. Ford has come full circle and getting stonger. Try telling me the glass is half empty and I will tell you it is half full and rising, not dropping.
Employees or long term investing timeline of 20 years maybe.Buy and hold has sunk an awful lot of people. I doubt that it will turn this stock around. Maybe when the Markets stabilize 5 years down the road the way we are going. Then they should contemplate a dividend. Not now. seems like every bit of good news is met with Negative results.And with 4k worth of shares. I would be happy to hve a dividend. But not at the levels this stock is at now.