Ford Motor Co.'s (F) decision to suspend its dividend and draw the full amount from credit lines ( ) is the "right move," analysts at RBC Capital said in a note Thursday. Cash will be used to offset the novel coronavirus' impact on production shutdowns, fund new initiatives, and "preserve flexibility," the analysts wrote. Other auto makers and parts suppliers are likely to also draw on facilities and potentially suspend dividends, RBC said. Shares of Ford pared some losses after testing multi-year lows on Thursday. The stock has lost 51% in the past 12 months, compared with losses of 15% and 23% for the S&P 500 index and the Dow Jones Industrial Average in the same period.
-Claudia Assis; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
March 19, 2020 12:36 ET (16:36 GMT)
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