GM shares surge in premarket on reinstatement of suspended dividend

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Shares of General Motors Co. GM, +2.53% surged 1.9% in premarket trading Friday, after the automobile maker said it will reinstate the payment of a quarterly dividend, more than two years after suspending it, and resume “opportunistic” repurchases of its common stock. The new quarterly dividend of 9 cents a share will be payable Sept. 15 to shareholders of record on Aug. 31. Based on Thursday’s closing price of $38.72, the annual dividend rate implies a dividend yield of 0.93%, compared with the yield for rival Ford Motor Co. F, -1.67% of 3.72% and the implied yield for the S&P 500 SPX, -1.29% of 1.53%. GM suspended its dividend in April 2020 in response to financial uncertainties resulting from the COVID-19 pandemic. The company said Friday it has boosted the authorization for its current share-repurchase program to $5 billion from $3.3 billion. GM’s stock has gained 7.2% over the past three months, while Ford shares have soared 25.7% and the S&P 500 has gained 9.8%.

This article was originally published by Marketwatch.com. Read the original article here.

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