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DETROIT - General Motors Co. (NYSE:GM) has declared a quarterly cash dividend for its shareholders. The automotive giant announced that a dividend of $0.12 per share will be distributed on March 20, 2025, to all shareholders of record as of the close of trading on March 7, 2025. According to InvestingPro data, GM has consistently raised its dividend for three consecutive years, with a notable 33% dividend growth over the last twelve months.
The declaration of the dividend comes as General Motors continues to position itself as a leader in the automotive industry, with a focus on the development of safer, smarter, and lower-emission vehicles. The company's lineup includes a range of gasoline-powered vehicles and what it claims to be the industry's widest array of electric vehicles (EVs), spanning across its Buick, Cadillac, Chevrolet, and GMC brands. With a market capitalization of $60.2 billion and current trading at an attractive P/E ratio of 5.8, InvestingPro analysis suggests GM is currently undervalued relative to its Fair Value.
General Motors has been vocal about its commitment to an all-electric future, a transition that aligns with global efforts to reduce carbon emissions and combat climate change. The company's strategy reflects a broader industry trend towards electrification, as automakers worldwide invest heavily in EV technology and infrastructure to meet increasing consumer demand and regulatory requirements.
The dividend announcement is a signal to investors of the company's financial health and its ability to generate cash flow, despite the significant investments required for its transition to electric vehicles. Dividends are often viewed as a sign of a company's confidence in its current and future performance. GM's financial strength is reflected in its "GOOD" overall health score from InvestingPro, which offers comprehensive analysis through its Pro Research Reports, available for over 1,400 US stocks.
This move by General Motors may also be seen as an effort to provide consistent returns to its shareholders amidst the capital-intensive shift towards electric vehicles, which requires substantial R&D expenditure and long-term strategic planning.
The information provided in this article is based on a press release statement from General Motors. As the automotive industry continues to evolve, General Motors appears to be maintaining its course towards innovation and sustainability while also rewarding its investors.
In other recent news, JPMorgan maintains an Overweight rating on General Motors (GM) with a $64 target. The firm has adjusted GM's earnings estimates for 2025 and 2026 downward due to anticipated changes in U.S. electric vehicle pricing. Despite this, GM's production in North America and China has exceeded expectations, contributing to a predicted fourth-quarter EPS of $2.06.
In related developments, GM's Chinese partner, SAIC Motor Corp., foresees a significant drop in profits for 2024, largely due to a writedown of GM's joint venture in China and an ongoing price war. Meanwhile, Cadillac, a GM division, has announced the production of the 2026 Cadillac LYRIQ-V, its fastest electric vehicle to date, set to begin in early 2025.
Furthermore, the Federal Trade Commission (FTC) has taken action against GM and its subsidiary OnStar for allegedly collecting and selling consumer data without proper consent. Additionally, Wells Fargo (NYSE:WFC) analysts suggest that the potential removal of EV buyer tax credits could notably affect GM, whose models are predominantly eligible for the credits. Lastly, a Consumer Financial Protection Bureau (CFPB) report indicates a rise in auto repossessions surpassing pre-pandemic levels, highlighting growing consumer risk in the auto loan market.
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