7 Skinflint Blue Chips That Owe Shareholders a Dividend Hike

These cheapskates have the cash to make it happen

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7 Skinflint Blue Chips That Owe Shareholders a Dividend Hike

Ford

ford logo 7 Skinflint Blue Chips That Owe Shareholders a Dividend HikeIf you think Exxon is cheap, take a look at Ford (NYSE:F). The automaker just reinstated its first dividend since 2006 — which is a good sign. Unfortunately, at a measly 20 cents per year, it is only slightly better than a 10% payout ratio based on projected earnings of $1.87 in fiscal 2012. The headline yield of 1.5% also is very disappointing.

The caution about jumping back into the dividend game is understandable, since investors never would stomach a reduction in payouts after six years of getting stiffed. But come on — a 10% payout ratio? Even if you double the dividend, you’re still below the S&P average. Either corporate leaders have almost zero confidence in Ford’s future, or they’re just being greedy.


Article printed from InvestorPlace Media, http://investorplace.com/2012/02/7-blue-chips-owe-shareholders-a-dividend-hike/.

©2014 InvestorPlace Media, LLC

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