Ford to Hike Dividend Again?

Ford Motor Co. is preparing to raise its quarterly dividend to 15 cents from 12.5 cents per share, according to Bloomberg News.

Ford F-150

Ford suspended dividends during the financial crisis, resuming payments at 5 cents in 2012. It raised the dividend from 10 cents to the current price a year ago.

The company told investors in September it intends to raise dividends to the highest sustainable level, even though it expected its pretax profit for 2014 would slip to $6 billion from an earlier forecast of about $8 billion.

CEO Mark Fields predicts earnings will grow again this year as production accelerates for the company's newly introduced aluminum-intensive F-150 pickup truck. Analysts estimate the F-150 generates a gross profit of about $10,000 per sales and accounts for 90% of Ford's overall earnings from automotive operations.