The GM Board of Directors has announced the company will reinstate quarterly cash dividend payments to shareholders after it suspended this practice in April of 2020 due to uncertainty stemming from the COVID-19 pandemic.
The GM Board said Friday that it had authorized the reinstatement of a quarterly cash dividend on the company’s outstanding common stock at a rate of nine cents per share. The first dividend payments will be sent to shareholders on September 15th, 2022.
In addition, GM said it will once again undertake “opportunistic,” share buybacks amid increased confidence in the market. As a result, the GM Board has increased the capacity of the company’s existing repurchase program from $3.3 billion to $5 billion.
GM CEO Mary Barra
GM CEO Mary Barra said Friday the automaker’s recent financial performance, as well as the expansion of its EV product portfolio and domestic battery manufacturing infrastructure, has “improved our visibility and strengthened confidence in our capacity to fund growth while also returning capital to shareholders.” Company CFO Paul Jacobson echoed this sentiment, saying the automaker’s “consistently strong earnings, margins and cash flow, our investment-grade balance sheet, and the achievement of several significant milestones in our growth strategy enables us to invest aggressively,” and return excess free cash flow to shareholders.
The American automaker believes it is well-positioned for the future after investing billions in its North American electric vehicle and battery manufacturing infrastructure. Ultium Cells LLC, the company’s battery manufacturing joint venture with LG, will open its first plant in Warren, Ohio this month, while two other plants in Tennessee and Michigan will come online in 2023 and 2024, respectively. Its North American electric vehicle manufacturing base is also expanding, while its growing EV product portfolio covers key segments such as crossovers, pickup trucks, luxury vehicles, utility vans and hatchbacks. Key current and future EV models covering these segments include the GMC Hummer EV Pickup, Chevy Silverado EV, Chevy Equinox EV, BrightDrop Zevo 600 and Chevy Bolt EV.
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Comments
Lol Still can’t purchase the truck i want…!
Maybe Waren Buffet knows more than GM is willing to share.. He sold most of his shares due to poor performance !! hmmmm
SGarcia: Yes, Warren sold GM stock and reduced his position in GM by 14.8%. So that does not equate with your statement. He still holds 3.6% of GM. Compare that to what he did with Verizon. He made a 100% cut in his position of VZ. Professional investors have various reasons for these kinds of decisions; and with the stock market volatility that we had in the first half of 2022, I am not surprised to see BRK.B make changes.
I will never buy any product again! !
Looks like the $80,000 Super Trucks are starting to PAY OFF?
doubletime:
You missed it completely! Any how it’s a chunk of change…lol .And no I’m very well read !
The GM corporation is not about Automobiles anymore…!
If so i wouldn’t be going on two years trying to order a Chevrolet Truck !
The corporation is hiding behind a curtain and lacks transparency! IMHO !
SGarcia: Here is a snippet on BRK’s stock reduction in GM stock; the other source I had stated the reduction was 14.8%.
“That was followed with a ~15% reduction this quarter at prices between ~$31.50 and ~$43. The stock currently trades at $38.99. Berkshire’s cost-basis on GM is ~$31.”
$0.09 per share. What a joke. The only one that will make any money will be Mary Barra. The largest individual shareholder of GM stock.
What a shame that GM was one of the largest corporations in America and now under bozo Barra imports over 1/3 of it products.
Stock buy backs: An insider trading scheme for executives to give themselves a raise.