When will Ford reinstate their dividend? $F

Posted By on April 14, 2021


Since Ford once-upon-a-time paid a solid dividend, it was one of those stocks I felt comfortable trading in and out of ford-logo-2003or  just sitting on for a while … but after the company suspended the dividend in March of 2020, I had to re-think $F stock. Owning Ford in 2020 and so far in 2021 has became much more of a pandemic “price-rebound” trade stock than a “I don’t mind if I hold for a while” investment. Will this change in the second half of 2021? Will Ford pay out a dividend again … or will shareholder have to wait until 2022? One thing is for sure, the company saves a lot of money by not paying a dividend, but do they prefer shareholders who will own the stock long term in exchange for a respectful dividend (think retirees, mutual funds and pension plans)?

Ford saved about $2.4B in cash last year by not distributing the quarterly dividend of $0.15 per share.

My guess is that the management and the board will wait for assured profitability (pandemic over) or until borrowing becomes too risky and costly (money gets tighter and interest rates rise). Since selling the shares I’ve held longer than a year in February and March (for long term vs short term profits), I’m still glad to see the demand for vehicles returning – who doesn’t want a growing economy? Hopefully this progress will continue and that President Biden’s tax increases will be tempered by wiser advisors and that the vaccine rollout will continue to move us closer to herd immunity.

Unfortunately the political winds are not gentle these day and the Left – Right divide is as wide as I’ve ever seen. The pressure cooker is constantly bubbling. printingmoney_aniFor now, and for the good and bad, Washington DC keeps dumping piles of money into the system, be it in the form of stimulus checks, infrastructure bill or pork. Besides A LOT of money ending up as inefficient bureaucratic waste, debt and bloat .. the money rolling into the economy doesn’t hurt the demand for new products that employ Americans or create trade in the form of Ford vehicles. Now, how much more borrowed and made up money we can continue to print without consequence?


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