Ford Motor Company, Dividend Policy

By Inghie Kwik, George G. C. Parker
1992 | Case No. F239
On January 10, 1991, Allan Gilmour, executive vice president and head of Automotive Operations for Ford Motor Company, stated his views on Ford’s dividend policy after the company reported a 1990 fourth quarter loss of $1.11 per share. He said: “a dividend in a company like ours, which is a mature industry, shouldn’t be cyclical. Only if the current recession proves to be a lot worse than a normal downturn, might Ford be forced to cut its dividend.”1Consistent with this view, Ford’s Board of Directors announced on that day that the 1991 first quarter dividend would be maintained at 75 cents a share. Ford’s common stock price on the New York Stock Exchange dosed at $25.625 that day, up 50 cents.
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