General Motors to Resume Dividend, Stock Buyback Amid Progress on Strategic Initiatives
MT NEWSWIRES 2:09 PM ET 8/19/2022
Symbol Last Price Change
GM 39.5357down +0.8157 (+2.1067%)
QUOTES AS OF 02:58:22 PM ET 08/19/2022
02:09 PM EDT, 08/19/2022 (MT Newswires) -- General Motors(GM) said Friday it was reinstating its quarterly dividend and share repurchases, more than two years after the automaker suspended them due to uncertainty associated with the COVID-19 pandemic.
The company declared a dividend of $0.09 per common share, payable Sept. 15 to shareholders as of Aug. 31. The board raised the size of its existing repurchase program to $5 billion, compared with $3.3 billion in remaining authorization.
"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," Chief Executive Mary Barra said in a statement. "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."
The company in April 2020 suspended its dividend and share repurchases as part of measures to preserve cash. General Motors(GM) paid $0.38 per share for the first quarter of 2020.
The company said Friday it recently launched the first vehicles developed on its Ultium platform -- the GMC Hummer electric truck and Cadillac Lyriq sports utility vehicle -- and has made the first deliveries for the BrightDrop Zevo 600 electric delivery van. It said the Ultium Cells plants in Spring Hill, Tennessee, and Lansing, Michigan, are scheduled to open in 2023 and 2024, respectively.
"Strong" financial results and the achievement of "several significant" milestones have paved the way for the company to return "excess free cash flow to shareholders," Chief Financial Officer Paul Jacobson said.
General Motors (GM) in July maintained its expectations for 2022 adjusted per-share earnings to be in a range of $6.50 to $7.50 after second-quarter non-GAAP EPS fell to $1.14 from $1.97 a year earlier. Revenue rose to $35.76 billion in the three months ended June 30 from $34.17 billion.
Price: 39.41, Change: +0.69, Percent Change: +1.78
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