Although it will be at a much lower rate than when it was suspended, General GM is reinstating a quarterly cash dividend that was cut to preserve funds during the early days of the coronaviruses epidemic.
The GM board of directors approved a 9 cents per share dividend on the company's outstanding common stock. When the dividend was suspended, it was 38 cents a share.
The company said it will increase the amount of common stock it buys back to $5 billion from the previous $3.3 billion. It didn't give a time frame for the purchases.
Ford Motor reinstated a quarterly dividend of 10 cents per share for its shareholders in October 2021.
Mary Barra, the CEO of GM, said earlier this year that the company would consider all opportunities to return excess capital to shareholders.
Progress on key strategic initiatives has improved our visibility and strengthened our confidence in our ability to fund growth while also returning capital to shareholders.
As the company continues to invest in its transformation plan, the company's board felt that 9 cents was an appropriate dividend.
The first dividend will be paid in September to shareholders of record at the close of business on August 31.
Our investment-grade balance sheet, consistent strong earnings, margins and cash flow, and several significant milestones in our growth strategy allow us to invest aggressively to accelerate our all-electric future while also supporting the return of excess free cash flow to shareholders.
As GM deals with supply chain problems, including a shortage of chips, the actions come.
The company's stock is down. The closing price was $38.72 a share. The market cap of the company is less than it was at the beginning of the year.
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