The Ford family, which owns over 70 million shares of the automaker, is expected to collect $28.3 million in 2013 as the company is doubling its quarterly dividend.
In 2012 Ford’s dividend sat at 5 cents per share, but analysts expect this year to double to 10 cents per share, due to last year’s strong financial results and a promising outlook for this year.
“We believe the timing suggests that (the fourth quarter) was likely solid,” said analyst Itay Michaeli of Citi Investment Research. “Second, the timing suggests that Ford is comfortable with 2013 outlook scenarios despite global macro uncertainty, mainly in Europe.”
Executive Chairman Bill Ford Jr. is among the biggest beneficiaries of the increase of dividends, as he own 14.5 million common shares and over 4 million Class B shares. Bill Ford Jr. is expected to make almost $7.5 million in dividend payments this year. Ford’s CEO Alan Mulally, who owns almost 22.4 million common shares will receive around $9 million in dividend payments this year.
During the first three quarters of 2012, Ford managed to increase its liquidity by $2 billion and reported 10 consecutive quarters of positive cash flow.
by Ana Cezara Savin
) - Friday, January 11th, 2013 - filed under Ford
. Image credit: .
Discuss: Ford Family to Receive $28M in Dividend Payments