Ford Motor Company (NYSE:F), one of the most successful automaker in the U.S., is all set to increase its dividends by 20% despite of declining profit for fiscal 2014. At the same time, the automaker is all set to launch an all-new version of F150 truck, which took more than six years to develop.
According to the latest speculations, the auto manufacturer is likely to increase its dividends by 20% extending it to $0.15 per share from existing $0.125. This is the third hike in dividend payouts of Ford Motor Company (NYSE:F) in the last three years. Mark Fields, Chief Executive Officer of Ford, already said that the profit expectations of the motor company are likely to lag behind its target of $7 billion to $8 billion and stand at $6 billion for the year. However, the company is still committed to offer the best dividends to its investors.
Bob Shanks, Chief Financial Officer of Ford, earlier told investors during the Dearborn meeting last year,
“Our plan for dividends is to continue to grow regular dividends up to the point that we don’t believe this is sustainable. We don’t think we’re at that point today where we’ve reached the level where they’re not sustainable over a downturn.”
In addition to an increase in its dividends, Ford Motor Company (NYSE:F) is all set to launch a new design of its F-150 pickup truck after spending 6 years in its development. The development team comprised of 1,000 engineers and the all-new pickup truck boasts around its latest technologies and better fuel efficiency. John Felice, Vice President of U.S. marketing and sales for Ford, said,
“Demand for the all-new F-150 also is very high, and it now is the fastest-turning vehicle in Ford showrooms, averaging just five days on dealer lots in December.”
It is not a surprise that Ford Motor Company (NYSE:F) invested excessive resources in the development of the new F-150. It has remained the best selling truck in the U.S. for the past 38 years.
This article has been written by Prakash Pandey.