General Motors have put an end to the dividend rumors that have been spiraling around the Detroit Auto Show, making it clear to the world that they will be offering a quarterly dividend of 30 cents per share on its common stock. The dividend will be payable March 28, 2014 to all common stockholders on record as of March 18, 2014. GM hasn’t awarded a dividend of this kind since 2008.
“The board understands that our investors should share in this success, and is pleased to announce a quarterly dividend to our common stockholders,” said outgoing GM chairman and CEO Dan Akerson.
Dan Ammann, former GM executive vice president and CFO turned GM President, added that their balance sheet, current liquidity, consistent earnings and cash flow prowess give them the ability to do this.
“The return to our shareholders is consistent with our capital priorities, and is an important signal of confidence in our plans,” Ammann, who will become GM president beginning Wednesday, said.
In the third quarter of 2013, GM counted 15 straight quarters of profit, where it achieved $16.3 billion in adjusted automotive free cash flow. As of Sept. 30, 2013, the automaker totaled $37.3 billion of liquidity and only $8.4 billion in outstanding automotive debt.