General Motors Co. (NYSE: GM) today declared a Q4 2016 dividend of 38 cents per share on the company’s common stock – the same as Q3 in a booming auto market. The yield at current trading prices is~4.7%. The Q4 dividend is payable Thursday 22 December 2016 to all common stockholders of record as of Wednesday 7 December 2016.
GM reports Q3 results tomorrow. The stock, like that of Ford Motor continues to languish in the $37 range. Analysts are concerned about GM’s almost complete reliance on the sales of trucks and SUVs in North America to make money. The Brexit mess is also expected to hurt GM’s earnings following the collapse of the British pound – it’s now the ounce trading at $1.22 – and the Euro following the vote for the UK to exit the EU. (‘Bloody Hell,’ What Does Brexit do to Automakers?)
During Q2 (GM Q2 Record at $2.9 Billion with Net Income on $42.4B Revenue) General Motors said that second-quarter net income to common stockholders was $2.9 billion, up 157% compared to $1.1 billion in Q2 of 2015 based on the sales of 2.4 million vehicles. This was flat year-over-year. Through 30 June, the company sold 4.76 million vehicles globally. Earnings per share (EPS) diluted were $1.81, compared to $0.67 in the second quarter a year ago.
The GM results came from China and North America with a little help from GM Financial. Still, EPS diluted-adjusted was a record at $1.86, up 44% compared to $1.29 in the second quarter of 2015. The company reported records for earnings before interest and tax (EBIT) adjusted of $3.9 billion and EBIT-adjusted margin of 9.3%. This compare to EBIT-adjusted of $2.9 billion and EBIT-adjusted margin of 7.5% in the second quarter of 2015, which included $0.3 billion restructuring costs.
