Ford Motor Company (F) is a Dividend Growth Stock: General Motors Company (GM), Toyota Motor Corporation (ADR) (TM)

So the only way that the Ford family can generate an income from its holdings is…you guessed it, a growing dividend to investors. Mind you, for more than six years the Ford family had to forgo any and all income on their class B shares. In years leading up the the dividend cut to zero, Ford had paid out huge dividends. In fact, the company paid out a whopping $10 billion dividend in 2000 after years of 3%-4% dividend yields.

A board under control

The board at Ford can merely listen and respect the Ford family’s wishes. Any desire for a higher dividend among the Ford family means that it will come to fruition. Remember, the Ford family essentially has complete control over who takes a seat on Ford’s board. Voting against the wishes of the family is voting against a lucrative board position at one of the best-known brands around the world.

Look for Ford to increase its dividends proportionally with income. The company is expected to earn $1.40 per share in 2014, which more than covers its excellent $.40 annual dividend. As European losses are reined in and Ford gets back to profitability in the continent, the company could earn more than $1.70 per share in 2014. That puts the company in position to drive the dividend higher.

Let the Ford family work in favor of shareholders. Their interests should ensure that Ford once again becomes a dividend growth stock that can pay a consistent dividend that increases with each passing year.

Don’t expect other automakers to keep the pace. General Motors will tie up excess cash repurchasing shares as the U.S. Treasury winds down its position while Toyota likely won’t increase its dividend meaningfully after failing to increase its dividend payout ratio in line with the 30% expectations set in 2007.

If you’re bullish on automakers and want to get paid to wait, Ford offers the most compelling dividend opportunity. Another dividend increase in 2014 would only serve as a catalyst to bring on more income funds, more shareholders, and higher share prices.

The article This Automaker is a Dividend Growth Stock originally appeared on Fool.com.

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