GM reinstates quarterly dividend
DETROIT - General Motors (GM) says it will resume paying a quarterly dividend, its first since the height of the financial crisis in 2008
The U.S. automaker's CEO, Dan Akerson, had hinted that a dividend may be coming and the company confirmed the move Tuesday. General Motors says its dividend of 30 cents per share is payable March 28 to stockholders of record as of March 18.
“Today’s General Motors is designing high-quality, world-class vehicles
for our customers and delivering consistently solid financial results,” Akerson said in a statement announcing the move. “The board understands that our
investors should share in this success and is pleased to announce a
quarterly dividend for our common stockholders.”
The Detroit-based company says investors should share in the company's success and that the dividend is a signal of confidence for a profitable future. GM has recorded a profit for 15 straight quarters.
Shares of GM jumped 3 percent in after-hours trading to $41.28. Competitor Ford Motor (F) halted its dividend payment in 2006 and resumed it in 2012.