Ford Dividend Offers 4.5% Yield

Ford Motor Company F said that its board has declared a dividend of $0.15 per share for the third quarter on its outstanding Class B and common stock. On an annualized basis, it worked out to $0.60 a share. The dividend provided a yield of 4.5 percent, which was better than the average yield of 3.10 percent for the five-year period.

Ford said the third quarter dividend was the same level as the regular dividends paid in the first and second quarters of 2016. The company indicated that its capital tactics is to maintain an investment grade balance sheet, finance the One Ford plan and deliver shareholder value.

The company said its dividend would be paid before September 1 to its shareholders of record on July 28. Its dividend payout ratio was 38.0 percent, which was also higher than the five-year average payout ratio of 30.0 percent. The company has been increasing its dividend rate in the last three years. As a result, its dividend growth was 42.26 percent in the three-year period.

The stock advanced 1.04 percent on Thursday.