My journey of becoming financial independence by 35 years old
Ford said it would pay a special one-time dividend to investors this year of 25 cents a share. It’s not a recurring dividend increase like the one at GM, but its a bigger and faster bonanza for investors. The extra Ford dividend is worth $992.2 millions and will be paid to investors who own the stock as of record date Jan 29, 2016. Ex-dividend date: Jan 27, 2016.
The automakers are making moves as their shares languish even as their profits grow. Ford and GM shares are down 19.5% and 13.4% respectively over the past 12 months. That’s a bit of a puzzle as profit at the companies are exploding. Ford and General Motors are expected to post 44.9% and 56.7% higher adjusted profit per share in 2015.
Both Ford and GM are significant payers of dividends, both paying out more than $2.4 billion a year in dividend payments. GM currently yields 4.8% – well above the market’s roughly 2% dividend yield – and Ford yields 4.78%.
What I like about Ford special dividend?
correction: exdividend date is 1/27/16, record date 1/29/16. Somebody from Reddit brought to to my attention, so I corrected in the article. Thank you for pointing that out.
Full disclosure: I own shares of Ford and I’m long on Ford.