General Motors to pay first stock dividend since 2008


Thu, Jan 16, 2014 - Page 15

General Motors Co (GM) on Tuesday announced plans to begin paying a quarterly dividend for the first time since the company’s 2008 government rescue.

GM is to begin paying a common stock dividend of US$0.30 per share in March, according to a statement released after the stock markets closed.

GM chief financial officer Dan Amman said in the statement that an “ongoing payout” was possible thanks to the company’s “fortress balance sheet, substantial liquidity, consistent earnings and strong cash flow.”

“This return to shareholders is consistent with our capital priorities and is an important signal of confidence in our plans for a continuing profitable future,” Amman said.

A GM spokesman confirmed that the dividend is the reborn company’s first since its initial public offering in November 2010

The prior company suspended its dividend in July 2008.

Earlier on Tuesday, GM said it sold 9.71 million cars and trucks last year, a 4 percent gain.

Sales grew 7 percent in the US and 11 percent in China, the world’s leading markets.

On Monday, Volkswagen said it sold 9.5 million light vehicles last year, setting a company record for overall sales.

Toyota, the sales champion in 2012 by selling roughly 9.7 million cars and trucks, is to report its sales next week.