Utilize your financial knowledge, give your answer or opinion to the input question or subject . Answer format is not limited.

Why would a company with a bad balance sheet be paying dividends?
A simple response is that it's a good political/strategic move. Ford have effectively said, "We know we still have debt, but we think the long term future is so good we can go back to paying dividends." It builds investor confidence and attracts new money. It can also be seen as a way of Ford indicating that they believe the type of debt (regardless of the amount) is okay for them to carry.