Citigroup Maintains Buy After Ford's Dividend Announcement

Citigroup has published a research report on Ford Motor Company

after the company's announcement earlier today of a $0.05/share cash dividend. In the report, Citigroup writes, "Ford announced earlier today that its Board of Directors has reinstated a quarterly cash dividend of $0.05 per share. The dividend is payable on March 31, 2012 to shareholders of record of Class B and common stock on January 31, 2012. The dividend amounts to $~800 million annually (18% of 2011E FCF) or a ~1.8% yield, which is broadly in-line with historical peer group levels. Ford indicated that the dividend “begins at levels sustainable through economic cycles”." Citigroup maintains its Buy rating and $15 price target on Ford, which is currently trading down $0.11 from yesterday's $11.08 closing price.