By Dow Jones Business News,
January 14, 2014, 06:42:00 PM EDT
By Jeff Bennett and John Kell
General Motors Co. has announced it will pay a 30-cent quarterly dividend, marking one of the final financial acts
by Chief Executive Dan Akerson, who leaves office at midnight Wednesday.
The first installment of the recurring dividend will be paid out March 28. The payout will cost GM nearly $1.67
billion a year, based on the amount of GM shares outstanding, according to FactSet.
The move is aimed in part at satisfying shareholders who want the company to return some of the roughly $30 billion
in cash it has amassed as the U.S. auto market has recovered. GM's dividend would return more than $1.2 billion a year
to shareholders. The announcement follows a dividend increase last week by Ford Motor Co.
The GM board approved the payout Tuesday on the eve of its 2014 financial outlook.
"The board understands that our investors should share in this success and is pleased to announce a quarterly
dividend for our common stockholders," Mr. Akerson said in a news release.
That move was made much easier with the government exit of GM last year. The last time GM paid a dividend was June
10, 2008, when it awarded shareholders with 25 cents.
GM said Tuesday it would pay a quarterly dividend of 30 cents a share on its common stock, payable March 28 to all
common stockholders on record as of March 18.
Through the third quarter of 2013, GM has achieved 15 straight quarters of profitability, a sharp turnaround
following one of the largest bankruptcies in U.S. history after turmoil in financial markets and high fuel prices dented
The U.S. auto industry in 2013 had its best sales year since 2007, and executives have said they expect gains to
continue through 2014.
Write to Jeff Bennett at firstname.lastname@example.org
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