Ford (NYSE:F) announced today that it will raise its quarterly dividend to 10 cents per share. The increase comes only nine months after it resumed paying any dividends following the firm’s troubles in the recession, The Wall Street Journal reports.
The move doubles the existing dividend of 5 cents per share and gives F a dividend yield of approximately 3%.
The company says following a strong December, it is committed to raising its dividend to a level “sustainable through all business cycles,” according to The Journal. The dividend is calculated to cost Ford $762.5 million per year.
Ford reported that new-vehicle sales rose 1.9% in December from the same month in 2011. The company also posted a $1.6 billion profit for the third quarter. Ford’s shares are up 2% in midday trading.