General Motors will again pay a quarterly dividend – 08/19/2022 at 14:40


(AOF) – General Motors today announced that its board of directors has authorized the reinstatement of a quarterly cash dividend of 9 cents per share. The first dividend will be paid on September 15, 2022 to shareholders of record on August 31, 2022. GM had suspended its quarterly dividend in April 2020 due to uncertainty caused by the global coronavirus pandemic. The automaker also announced that it would resume share buybacks.

This week, the board increased the capacity of the existing share buyback program — of which there was still $3.3 billion to complete — to $5 billion in common stock.

“GM is investing more than $35 billion through 2025 to advance its growth plan, including rapidly expanding its electric vehicle portfolio and building a nationwide battery manufacturing infrastructure,” said GM CEO Mary Barra. . “Progress on these key strategic initiatives has improved our visibility and reinforced confidence in our ability to fund growth, while returning capital to shareholders.”

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A paradoxical performance

Data from EY highlights that the performance of the world’s top 16 manufacturers was particularly strong in 2021. While the average margin has fallen for three years in a row, from 6.3% in 2017 to just 3.5% in 2020 , this margin stood at 8.5% in 2021. This level is a record for ten years. However, the context was particularly hectic for manufacturers, faced with unprecedented shortages of components. Global sales fell 14% in 2020, the year of the health crisis, to rebound by only 5% in 2021. However, last year, players were able to reap the benefits of their efforts on their fixed cost structure. .



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