General Motors Company Announces Quarterly Dividend of $0.15 (NYSE:GM)

Key Points

• General Motors announced a quarterly dividend of $0.15 per share, to be paid on December 18th to investors recorded by December 5th, representing an annualized yield of 1.0%.
• The company has a payout ratio of 6.5%, indicating strong earnings coverage for the dividend, with expectations to earn $11.82 per share next year.
• Analysts have a consensus rating of "Moderate Buy" for General Motors, with an average target price of $65.00, following several recent upgrades from various financial institutions.

General Motors Company (NYSE:GM - Get Free Report) TSE: GMM.U declared a quarterly dividend on Monday, October 20th. Investors of record on Friday, December 5th will be given a dividend of 0.15 per share by the auto manufacturer on Thursday, December 18th. This represents a c) annualized dividend and a yield of 1.0%. The ex-dividend date is Friday, December 5th.

General Motors has a payout ratio of 6.5% indicating that its dividend is sufficiently covered by earnings. Research analysts expect General Motors to earn $11.82 per share next year, which means the company should continue to be able to cover its $0.60 annual dividend with an expected future payout ratio of 5.1%.

General Motors Price Performance

NYSE:GM opened at $57.95 on Tuesday. The stock has a market cap of $55.17 billion, a P/E ratio of 9.20, a PEG ratio of 1.72 and a beta of 1.33. General Motors has a one year low of $41.60 and a one year high of $62.14. The company has a fifty day moving average price of $58.13 and a 200 day moving average price of $52.24. The company has a debt-to-equity ratio of 1.42, a current ratio of 1.22 and a quick ratio of 1.05.

General Motors (NYSE:GM - Get Free Report) TSE: GMM.U last released its earnings results on Tuesday, July 22nd. The auto manufacturer reported $2.53 EPS for the quarter, beating the consensus estimate of $2.52 by $0.01. The firm had revenue of $47.12 billion during the quarter, compared to analysts' expectations of $45.87 billion. General Motors had a net margin of 2.54% and a return on equity of 12.98%. The business's quarterly revenue was down 1.8% compared to the same quarter last year. During the same period in the prior year, the company earned $3.06 EPS. Analysts anticipate that General Motors will post 11.44 earnings per share for the current year.

Analysts Set New Price Targets

Several equities analysts recently commented on GM shares. UBS Group upgraded shares of General Motors from a "neutral" rating to a "buy" rating and upped their target price for the company from $56.00 to $81.00 in a research note on Wednesday, September 24th. JPMorgan Chase & Co. increased their price objective on shares of General Motors from $60.00 to $80.00 and gave the company an "overweight" rating in a research note on Tuesday, September 30th. Jefferies Financial Group increased their price objective on shares of General Motors from $50.00 to $55.00 and gave the company a "hold" rating in a research note on Monday, October 6th. CLSA upgraded shares of General Motors to a "moderate buy" rating in a research note on Monday, July 7th. Finally, Weiss Ratings restated a "buy (b-)" rating on shares of General Motors in a research note on Wednesday, October 8th. One analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating, six have assigned a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $65.00.

About General Motors

General Motors Company designs, builds, and sells trucks, crossovers, cars, and automobile parts; and provide software-enabled services and subscriptions worldwide. The company operates through GM North America, GM International, Cruise, and GM Financial segments. It markets its vehicles primarily under the Buick, Cadillac, Chevrolet, GMC, Baojun, and Wuling brand names.

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