On August 19, General Motors Company (GM) announced the recommencement of the return of excess capital to shareholders in the form of quarterly dividends after more than two years since it was stalled in April 2020. The company also expanded its budget for opportunistic share repurchases to $5 billion, up from the $3.3 billion remaining under the program.
However, at 9 cents a share, the quarterly cash dividend is 76% down from 38 cents a share last paid back in April 2020. The company had suspended the dividend payment to preserve cash during the pandemic. The company’s forward annual dividend of 36 cents translates to a mere 0.93% yield.
