Monday, April 13, 2015
GM raises dividend 20% --- New yield is 3.96%
Today GM announced that it will raise its quarterly dividend from $.30 to $.36 a share. This represents a 20% increase and makes the new yield 3.96%. GM had previously mentioned that it would be raising the dividend, but it was not made official until today.
The dividend will be payable on June 23 for shareholders of record on June 10
Since I currently own 146.13 shares, my yearly dividends will increase by $35.07.
This is obviously great news and it appears that many of the troubles with the ignition recalls are starting to fade away as GM is performing at a high level right now.
I must admit buying shares last year was difficult as the company announced a seemingly endless number of recalls that I believe approached 20 million vehicles. I view myself as a bit of a storm chaser, whether it is buying Target after the security breach, GM during the recall debacle, or most recently buying energy companies amid collapsing oil prices.
This strategy sometimes works well and sometimes does not. Unfortunately deep values rarely appear with pretty bows attached. I find they typically cause a little heartburn and restlessness.
I think lower gas prices could really help the bread and butter products which of course are large trucks and SUVs. GM still looks like a decent value at current prices, but I have a fairly large position already and probably won't add too many more shares.