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General Motors Co (NYSE: GM) on Friday said it would reinstate quarterly dividend payouts, signifying the automobile giant’s confidence that it has passed the worst risks from the COVID-19 pandemic and the economic unrest of the past several months.
In April 2020, the carmaker suspended dividend payments and share buybacks after the pandemic hit sales and impacted production, forcing the company to conserve cash during the crisis.
The carmaker said the first dividend of 9 cents per share will be paid on September 15, 2022.
GM CEO Mary Barra cited the company’s EV expansion and domestic battery manufacturing plans and said, “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.”
Shares of GM rose more than 2% on Friday, which is down 33% so far this year.
The automobile giant also said it would also resume share repurchases, adding that the board has 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.
Picture Credit: PYMNTS
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