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General Motors reinstates dividend suspended in pandemic

FILE - This May 12, 2020, file photo, shows a general view of the Renaissance Center, headquarters for General Motors, along the Detroit skyline from the Detroit River. General Motors will keep its headquarters in its seven-building office tower complex in downtown Detroit, its CEO says. Mary Barra, in an interview with The Associated Press, says the automakers main office will remain in the Renaissance Center, the centerpiece of the citys skyline just across the Detroit River from Canada. (AP Photo/Paul Sancya) (Paul Sancya, Copyright 2020 The Associated Press. All rights reserved)

DETROIT – General Motors will reinstate quarterly dividend payments that were suspended during the pandemic that shut down its factories.

The automaker said Friday that the dividend of 9 cents per share will be paid on Sept. 15 to shareholders of record on Aug. 31.

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GM canceled its quarterly dividend in April 2020 as COVID-19 spread unchecked in the U.S. and manufacturing in the U.S. screeched to a near halt.

The last time the Detroit automaker suspended dividend payments was in 2008 during the nation's worst economic downturn since the Great Depression. Those payments resumed six years later, in 2014.

GM also announced that its going to start buying back shares again. The company board boosted its existing stock buyback program's capacity to $5 billion, from $3.3 billion earlier this week.

Shares of General Motors Co. are up 7% this month.


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