Covid Recovery: GM Stock Dividend Returns

General Motors Co. (NYSE: GM) announced today that its Board of Directors has authorized the reinstatement of a quarterly cash dividend on the company’s outstanding common stock at a rate of $0.09 per share. The first dividend will be paid on Sept. 15, 2022, to shareholders of record as of the close of business on Aug. 31, 2022.

GM suspended its quarterly dividend in April of 2020 in response to uncertainty caused by the global coronavirus pandemic. While some uncertainty still exists, AutoInformed thinks that the ongoing successes of the Biden Administration’s public health and employment policies – particularly the passage of the Stop Inflation Recovery Act of 2022 – are reasons for optimism. (AutoInformed: Biden Recovery: Transportation Jobs Equal Pre-Pandemic; Biden Administration Cuts Republican Budget Deficit by 66%; President Biden Targets 50% Electric Vehicle Sales in 2030) 

“GM is investing more than $35 billion through 2025 to advance our growth plan, including rapidly expanding our electric vehicle portfolio and creating a domestic battery manufacturing infrastructure,” said Mary Barra, GM Chair and CEO. “Progress on these key strategic initiatives has improved our visibility and strengthened confidence in our capacity to fund growth while also returning capital to shareholders.”

It is ironic that the Democrats have become protective of big business as the Republicans sink further into the quicksand of enabling the beleaguered Lord of Mar-a-Lardo and Trump’s demonstrable false ‘Stop the Steal’ actions with its resulting violence, lies and ongoing attempts to overthrow US democracy with numerous candidates and state policy mechanisms to rig future elections and disenfranchise voters.

GM also announced it will resume what it calls “opportunistic share repurchases.” This week, the GM Board increased the capacity under the company’s existing repurchase program to $5.0 billion of common stock, up from the $3.3 billion previously remaining under the program.

“GM’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 to accelerate our all-electric future while also supporting the return of excess free cash flow to shareholders, aligned with our long-term capital allocation strategy,” said Paul Jacobson, GM chief financial officer.