June 16, 2024

Solid State Lighting Design

Find latest world news and headlines today based on politics, crime, entertainment, sports, lifestyle, technology and many more

GM returns quarterly dividend, raises share buybacks to $5 billion

GM returns quarterly dividend, raises share buybacks to $5 billion

Mary Barra, President and CEO of General Motors (GM), speaks during the Milken Institute World Conference in Beverly Hills, California, on May 2, 2022.

Patrick T. Fallon | AFP | Getty Images

Detroit – General motors Returns quarterly cash dividends to shareholders that were cut to conserve funds during the first days of coronavirus pandemicalthough it will be at a much lower rate than when it was suspended.

The Detroit automaker said Friday that General Motors’ board of directors has authorized a dividend on the company’s outstanding common stock at a rate of 9 cents per share. That’s a drop of nearly 76% from 38 cents a share at Earnings suspended In April 2020.

GM also announced that it would resume and increase its opportunistic share buybacks to $5 billion in common stock, up from the $3.3 billion previously remaining under the program. It did not specify a time frame for the buybacks.

Investors have been wondering when GM’s quarterly earnings will be restored, especially after competing against Ford Motor’s Crosstown Redistribute quarterly dividends 10 cents per share for its shareholders in October 2021.

General Manager General Manager Marie Para It said earlier this year that the company would “consider all opportunities to return surplus capital to shareholders,” but the priority is to accelerate turnaround plans that include investment. $35 billion for electric and self-driving cars Until 2025.

In a statement released Friday, Barra said progress on “key strategic initiatives has improved our vision and enhanced confidence in our ability to fund growth while returning capital to shareholders.”

See also  The best Cyber ​​Monday deals under $25 after Black Friday

The company’s board of directors felt that 9 cents was an “appropriate” dividend as the company continues to invest in its transformational plan, according to GM spokesman Jim Kaine.

The company said the first dividend will be paid on September 15 to shareholders of record as of the close of business on August 31.

“GM’s strong earnings, consistent margins and cash flow, our investment grade balance sheet, and achievement of several important milestones in our growth strategy enable us to invest aggressively to accelerate our all-electric future while supporting our increased free cash return,” said GM Chief Financial Officer Paul Jacobson at Statement: “The flow to shareholders, in line with our long-term capital allocation strategy.”

The measures come as GM continues to grapple with supply chain problems, including a shortage of semiconductor chips and waning investor confidence.

The company’s stock is down nearly 34% this year. It closed Thursday at $38.72 per share. The company’s market capitalization is $56.2 billion, down from more than $90 billion at the start of the year.