Ford Pays Additional Dividends To Investors This Year

Ford modifies cars to improve efficiencies and test them in harsh weather conditions.

Ford and General Motors are paying an additional $1.1bn in 2016 to investors. Both giants recently made an announcement of additional dividends worth an additional billion to be disbursed this year. GM on Wednesday announced that it is boosting its quarterly dividend by almost 6% to 38 cents per share. This boost would be adding $124m to GM investors’ pockets in 2016.

GM’s move came in after Ford said that it would make a payment of a special one-time dividend to investors in 2016 of 25 cents per share. Though it is not a recurring increase in dividend, such as the one offered by GM, but it is a faster and bigger bonanza for investors. The additional dividend offered is worth $992.2 million and will be disbursed to investors who own the stock as of January 29, 2016.

Both automotive organizations are taking measures as their stock suffers even as their profits grow. GM and Ford stock is down 13.4% and 19.5% respectively in the past one year, which is a bit puzzling as the companies’ profits are growing rapidly. It is expected that both would post 56.7% and 44.9% higher adjusted profit per share in the past year.

Both businesses make significant payments of dividends, both disbursing over $2.4bn per year in terms of dividend payments. GM is currently yielding 4.8% - well over the market’s dividend yield of approximately 2% - and Ford has yielded 4.7%.

In other news, Auto Express has reported that Ford disclosed its plans to make its vehicle even more efficient. Talking to the Detroit Motor Show recently, Ford’s official Bob Fascetti disclosed big plans of the brand to manufacture more economical and lighter cars as it rolls out its successful Eco Boost engine by 2020.

The 1.0-litre 3-cylinder EcoBoost has already succeeded in winning the International Engine of the year thrice, but engineers further launched a new concept employing carbon fiber to reduce weight and enhance efficiency.

Ford’s prototype engine would differ to a little extent from its gleaming concept vehicles. By employing injection-molded carbon fiber for objectives, such as the oil pan and sump, the new 3-cylinder is 13 kilograms and 15.5% lighter when compared to the engine installed in the current Focus and Fiesta. It takes advantage of the extensive aluminum usage to cut down some important component weight. 

The company is now conducting test of driverless automobiles in  adverse climatic conditions at University of Michigan facility, which covers an area of 32 acres and stimulates an urban environment of the real world.