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GM sets third-quarter dividend at $0.12 per share

EditorNatashya Angelica
Published 07/22/2024, 04:21 PM
© Reuters.
GM
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DETROIT - General Motors Co. (NYSE: GM) has announced a cash dividend for the third quarter of 2024, setting the payout at $0.12 per share for holders of its common stock. This dividend is scheduled to be paid on September 19, 2024, to shareholders who are on record by the close of trading on September 6, 2024.

The automotive giant, known for its commitment to an all-electric future, operates globally under various brand names including Chevrolet, Buick, GMC, Cadillac, Baojun, and Wuling. Central to GM's strategy is the Ultium battery platform, which the company anticipates will underpin a wide range of vehicles from mass-market models to high-performance offerings.

General Motors has been making strides in the automotive industry not only through its vehicle lineup but also via its subsidiaries, such as OnStar. OnStar is recognized for its contributions to vehicle safety services and connected vehicle technology, playing a significant role in GM's broader business strategy.

The announcement of the dividend comes as part of GM's ongoing efforts to deliver value to its shareholders. Dividends are a way for companies to distribute a portion of their earnings back to shareholders, and GM's consistent dividend payments signal its financial stability and confidence in its business model.

While the dividend declaration is a routine financial announcement, it is also a reflection of the company's performance and its management's outlook on the company's financial health. Shareholders of General Motors can anticipate the receipt of their dividends in mid-September, following the record date in early September.

This financial update is based on a press release statement from General Motors Company (NYSE:GM). It is intended to provide shareholders and the investment community with the latest dividend information regarding one of the world's leading automotive companies.

In other recent news, General Motors (GM) has seen several significant developments. RBC Capital maintained its Outperform rating on GM, suggesting potential for a robust second quarter. The company's management remains hopeful about their electric vehicle (EV) sales, forecasting the sale of 200,000 to 250,000 battery electric vehicles (BEVs) in 2024. However, GM has recalibrated its goal to produce 1 million EVs by the end of 2025 without setting a new target.

On the investment front, GM has committed at least $900 million towards converting its Lansing, Michigan plant for EV production. The Biden administration has also planned to provide nearly $1.1 billion in grants to GM and Stellantis (NYSE:STLA) for the conversion of existing plants for EV production.

Despite challenging market conditions, GM reported a 40% increase in U.S. EV sales in the second quarter. However, the company is facing a lawsuit from a group of 26 state attorneys general over vehicle fuel economy regulations. These are recent developments and will be closely monitored by investors and market watchers.

InvestingPro Insights

As General Motors Co. (NYSE: GM) positions itself for a future powered by electric vehicles and continues to reward shareholders with dividends, the company's financial metrics paint a promising picture.

According to recent data from InvestingPro, GM boasts a robust market capitalization of $56.53 billion and an attractive P/E ratio of 6.08, which further adjusts to a lower 5.29 when considering the last twelve months as of Q1 2024. This demonstrates the company's ability to generate earnings at a cost-effective rate relative to its share price.

InvestingPro Tips highlight that General Motors is not only a prominent player in the Automobiles industry but also shows a strong financial discipline. Management's aggressive share buyback strategy is a testament to their confidence in the company's value. Moreover, with 6 analysts revising their earnings upwards for the upcoming period and the company trading at a low P/E ratio relative to near-term earnings growth, there is an optimistic outlook for GM's profitability.

Investors keeping an eye on the company's stock will note that GM is trading near its 52-week high, with a price 98.32% of that peak, reflecting a large price uptick over the last six months. This upward trajectory is supported by a 37.52% price total return over the same period, signaling strong market confidence in the company.

For those looking to delve deeper into General Motors' financials and gain additional insights, InvestingPro offers a wealth of further analysis. Armed with the coupon code PRONEWS24, investors can get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, unlocking access to even more valuable InvestingPro Tips. Currently, there are 9 additional tips available for GM on InvestingPro, each designed to help investors make more informed decisions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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