By Sam Boughedda
General Motors (NYSE:GM) said Friday that it has authorized the reinstatement of its quarterly cash dividend at a rate of $0.09 per share.
The company initially suspended its quarterly dividend in April of 2020 in response to the Covid-19 pandemic and the expected economic uncertainty.
However, it has now decided to reinstate its dividend payments due to consistently strong earnings, margins, and cash flow. GM's first dividend will be paid on September 15, 2022, to shareholders of record at the close of business on August 31.
The automotive manufacturer also announced it will resume share repurchases after it increased the capacity under its existing repurchase program to $5 billion from the $3.3 billion remaining under the program.
"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," said Mary Barra, GM Chair and CEO. "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."
GM shares rallied early in Friday's session, hitting a high of $40.28. However, they are now at $39.33, up 1.56% on the day.