WASHINGTON, Aug. 19 (BNA) – General Motors said Friday it will return its quarterly dividend, indicating that the automaker is confident it has weathered the worst risks from the pandemic and economic turmoil in the past several months. .
According to Reuters, the automaker suspended dividend payments and stock buybacks in April 2020 after the global coronavirus pandemic hit sales and affected production, forcing the company to maintain cash during the crisis.
The automaker said in a statement that its first dividend, at a rate of 9 cents per share of the company’s common stock, will be paid on September 15, 2022.
Citing the company’s plans to expand into electric vehicles (EV) and domestic battery manufacturing infrastructure, GM CEO Mary Barra said, “Progress on these key strategic initiatives has improved our vision and strengthened our confidence in our ability to fund growth while returning capital to shareholders.” .”
Cross-city rival Ford Motor Co. (FN) said in July it would return its dividend to 15 cents a share before the pandemic.
Shares of GM rose more than 2% to $39.36 in pre-market trading.
Shares of GM are down 33% so far this year, even though the company has stuck to its optimistic earnings forecast and told investors last month that production disruptions caused by shortages in semiconductors are easing.
Last year, the company boosted its spending plans on electric and self-driving cars to $35 billion through 2025 as it looks to catch up with electric vehicle leader Tesla Inc (TSLA.O).
Meanwhile, GM also said it would resume opportunistic share buybacks, adding that the board of directors has increased capacity under the company’s existing buyback program to $5.0 billion in common stock, up from the $3.3 billion previously remaining under the program.
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