Shares of Ford Motor Co. (F) fell 2.7% in premarket trading Thursday, as Benchmark analyst Michael Ward said he expects the automaker to suspend its dividend in April. Ford pays a quarterly dividend of 15 cents a share, which based on Wednesday's closing price of $4.50 implies a dividend yield of 13.33%, compared with the yield for rival General Motors Co. (GM) of 9.05% and the implied yield for the S&P 500 of 2.54%. "The unlikely events and the financial impact from the coronavirus along with Ford's recent performance, in our view, will result in a suspension of the dividend at the Board meeting in early-April," Ward wrote in a note to clients. Ford and other automakers said this week that assembly plants would be closed ( ) as a result of the COVID-19 pandemic. Ford's stock has tumbled 43.8% over the past month through Wednesday, while the S&P 500 has shed 29.2%.
-Tomi Kilgore; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
March 19, 2020 06:30 ET (10:30 GMT)
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