Ford Motor Co. said it will pay a quarterly dividend for the first time in more than five years, another step in Chief Executive Alan Mulally's plan to restore the auto maker's reputation with investors.

Ford canceled its dividend in September 2006 to conserve cash as its fortunes were turning down. The move coincided with the hiring of Mr. Mulally, who at about the same time approved borrowing $23.5 billion to fund its restructuring and cushion it through a downturn.

The Dearborn, Mich., auto maker's move to restore its dividend is another sign of the turnaround among the Detroit Three auto makers. Ford said it would maintain the dividend even if another downturn hits the U.S., said Lewis Booth, chief financial officer. The company ran stress tests to ensure it would have sufficient cash to afford the quarterly payments in such an event.

"We wanted to make sure that this is sustainable," he said. "We have substantially restructured the company," and officers think it can remain profitable even were auto sales to plunge.

On March 1 it will pay a five-cents-a-share dividend to owners as of Jan. 31, 2012.