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GM restores quarterly dividend, raises share repurchases to $5 billion


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

Patrick T. Fallon | AFP | beautiful pictures

ADVICE – Synthetic engine is restoring a quarterly cash dividend to shareholders that was cut to preserve funds in the early days of coronavirus pandemicalthough it will be at a much lower level than when it was suspended.

The Detroit automaker on Friday said GM’s 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 about 76% from 38 cents per share when dividend has been suspended in April 2020.

GM also announced it would go ahead and increase its opportunistic share buybacks to $5 billion in common stock, up from the $3.3 billion remaining previously under the program. It does not specify a timeframe for redemptions.

Investors have questioned when GM’s quarterly dividend will be restored, especially after rival Ford Motor was knocked out. quarterly dividend recovery 10 cents per share to its shareholders in October 2021.

GM’s CEO Mary Barra earlier this year said that the company would “consider all opportunities to return excess capital to shareholders,” but the priority is to accelerate transformation plans that include investment $35 billion electric and self-driving cars to 2025.

In a statement Friday, Barra said progress on “major strategic initiatives has improved our vision and strengthened confidence in our ability to finance growth while paying return capital to shareholders.”

The company’s board of directors feels that 9 cents is an “appropriate” dividend as the company continues to invest in its transformation plan, according to GM spokesman Jim Cain.

The first dividend will be paid on September 15 to prominent shareholders since the end of business on August 31, according to the company.

“GM’s consistently solid earnings, margins and cash flow, our balance sheet and the achievement of several key milestones in our growth strategy allow us to invest heavily powerful to accelerate an all-electric future while supporting excess cash flow.flow to shareholders, consistent with our long-term capital allocation strategy,” said GM Chief Financial Officer Paul Jacobson said in a statement.

The actions come as GM continues to address supply chain issues, including semiconductor chip shortages and waning investor confidence.

The company’s shares have fallen about 34% this year. It closed Thursday at $38.72 a share. The company’s market capitalization is $56.2 billion, down from more than $90 billion at the start of the year.



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