General Motors starts paying dividends again

General Motors Company announced to resume monthly dividend payments, which it canceled at the start of the COVID-19 pandemic to conserve reserves. The Board of Directors of GM decided to pay monthly at $0.09 per share. This is 76% lower than it was before the cancellation of dividends: until April 2020, the company’s shareholders received $0.38 per share. However, GM’s management noted that it considers $0.09 to be an “optimal” amount, given that the company continues to actively invest in a program of transformation and growth.

Regarding this program, the company said that $35 billion will be invested through 2025, including the rapid expansion of the portfolio of cars with electric motors and the creation of infrastructure in the United States for the production of electric batteries for them. In addition, in a statement, GM management announced the expansion of a massive share buyback program, under which the company previously planned to buy back shares from shareholders for $3.3 billion. Now GM is ready to increase the buyback amount to $5 billion.

Alena Miklashevskaya