The General Motors Company (NYSE: GM) Board of Directors today declared a Q1 2015 dividend of 30 cents per share on its common stock. The dividend is payable Tuesday 24 March to all common stockholders of record as of Wednesday, 11 March. On an annual basis, the dividend of $1.20 is paying ~3.6%.
GM, now free of its bankruptcy-issued Series A preferred stock*, was up 19% in December U.S. sales, +5% at 2.94 million vehicles for the year. Globally, GM is in Third place at 9.92 million vehicles, +2%, during calendar year 2014 after Toyota Motor and Volkswagen Group. Rumors persist that GM is considering an autonomous car joint venture with Google.
*As of the end of 2014, GM has redeemed all 156.1 million outstanding shares of its Series A Preferred Stock from the UAW Retiree Medical Benefits Trust (VEBA) and Canada Gen Investment Corporation for the total amount of $3.9 billion, including accumulated dividends. The shares had a liquidation preference of $25 per share and accrued cumulative dividends at a rate equal to 9% annually, which was an expensive ~$350 million annual cost.
GM previously this year took on much cheaper debt to facilitate the buybacks. GM bought 140 million shares from the VEBA, and 16.1 million shares from Canada Gen Investment Corporation. Because of the redemption of the preferred shares, a reduction in net income attributable to common stockholders of about $800 million will be recorded in Q4 of 2014, which will be treated as a special item.
