General Motors Company (NYSE: GM) today declared a quarterly dividend of 30 cents per share on its common stock. The dividend is payable 28 March 2014 to all common stockholders of record as of 18 March 2014. The last time GM paid a dividend on common was in the pre-bankruptcy days of 2008. The stock has been trading in the $40 per share range.
GM also said it is chief financial officer for North America Chuck Stevens becomes global CFO, replacing Dan Ammann, who becomes GM’s president tomorrow Wednesday.
“Today’s General Motors is designing high-quality, world-class vehicles for our customers and delivering consistently solid financial results,” said Dan Akerson, GM chairman and CEO. “The board understands that our investors should share in this success and is pleased to announce a quarterly dividend for our common stockholders.”
The welcome news for investors came as GM said its dealers delivered 9,714,652 vehicles around the world in the 2013, up 4% compared with 2012. Among GM’s top five global markets by volume, China and the United Kingdom posted the largest year-over-year sales increases on a percentage basis, with each up 11%. GM’s China sales set a new full-year record. Sales in the United States increased 7%. However, GM’s North American market share remains frozen at 18% in the face of strong competitors and its still damaged brands.
According to Dan Ammann, GM executive vice president and chief financial officer: “Our fortress balance sheet, substantial liquidity, consistent earnings and strong cash flow provide the foundation for an ongoing payout. This return to shareholders is consistent with our capital priorities and is an important signal of confidence in our plans for a continuing profitable future.”
Through Q3 of 2013, GM achieved 15 straight profitable quarters in which it generated $16.3 billion in automotive free cash flow. As of the end of Q3 2013, the company had total automotive liquidity of $37.3 billion and $8.4 billion of automotive debt.
