Wall Street says Ford Motor Co. must cut its dividend. The automaker says that's nonsense.

The debate erupting over Ford's quarterly payout to shareholders—including the founding family that derives millions from the disbursements—is exposing a growing and contentious divide over what needs to be done to fix the ailing automaker.

Analysts at Morgan Stanley and Berenberg say Ford can no longer afford to pay the 15-cent dividend—the most generous among its automotive peers—as earnings evaporate overseas and the company initiates an $11 billion restructuring that it's said will take as much as five years.

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.