Latest news with #GeneralMotorsCompany
Yahoo
01-06-2025
- Business
- Yahoo
Why You Might Be Interested In General Motors Company (NYSE:GM) For Its Upcoming Dividend
It looks like General Motors Company (NYSE:GM) is about to go ex-dividend in the next 4 days. Typically, the ex-dividend date is one business day before the record date, which is the date on which a company determines the shareholders eligible to receive a dividend. The ex-dividend date is important as the process of settlement involves a full business day. So if you miss that date, you would not show up on the company's books on the record date. Thus, you can purchase General Motors' shares before the 6th of June in order to receive the dividend, which the company will pay on the 19th of June. The company's upcoming dividend is US$0.15 a share, following on from the last 12 months, when the company distributed a total of US$0.48 per share to shareholders. Looking at the last 12 months of distributions, General Motors has a trailing yield of approximately 1.0% on its current stock price of US$49.61. We love seeing companies pay a dividend, but it's also important to be sure that laying the golden eggs isn't going to kill our golden goose! So we need to investigate whether General Motors can afford its dividend, and if the dividend could grow. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. Dividends are typically paid from company earnings. If a company pays more in dividends than it earned in profit, then the dividend could be unsustainable. General Motors has a low and conservative payout ratio of just 6.8% of its income after tax. That said, even highly profitable companies sometimes might not generate enough cash to pay the dividend, which is why we should always check if the dividend is covered by cash flow. Luckily it paid out just 3.8% of its free cash flow last year. It's positive to see that General Motors's dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut. View our latest analysis for General Motors Click here to see the company's payout ratio, plus analyst estimates of its future dividends. Stocks in companies that generate sustainable earnings growth often make the best dividend prospects, as it is easier to lift the dividend when earnings are rising. If earnings fall far enough, the company could be forced to cut its dividend. Fortunately for readers, General Motors's earnings per share have been growing at 11% a year for the past five years. Earnings per share have been growing rapidly and the company is retaining a majority of its earnings within the business. Fast-growing businesses that are reinvesting heavily are enticing from a dividend perspective, especially since they can often increase the payout ratio later. Another key way to measure a company's dividend prospects is by measuring its historical rate of dividend growth. General Motors's dividend payments per share have declined at 8.8% per year on average over the past 10 years, which is uninspiring. It's unusual to see earnings per share increasing at the same time as dividends per share have been in decline. We'd hope it's because the company is reinvesting heavily in its business, but it could also suggest business is lumpy. Is General Motors an attractive dividend stock, or better left on the shelf? General Motors has grown its earnings per share while simultaneously reinvesting in the business. Unfortunately it's cut the dividend at least once in the past 10 years, but the conservative payout ratio makes the current dividend look sustainable. There's a lot to like about General Motors, and we would prioritise taking a closer look at it. So while General Motors looks good from a dividend perspective, it's always worthwhile being up to date with the risks involved in this stock. Be aware that General Motors is showing 2 warning signs in our investment analysis, and 1 of those is potentially serious... A common investing mistake is buying the first interesting stock you see. Here you can find a full list of high-yield dividend stocks. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
28-05-2025
- Automotive
- Yahoo
General Motors Company (GM) to Invest $888 Million in Tonawanda Propulsion Plant
General Motors Company (NYSE: GM) on Tuesday announced plans to invest $888 million in its Tonawanda Propulsion plant to support the production of the sixth generation of V-8 engines used in SUVs and full-size trucks. A group of technicians in a garage, inspecting car parts and ensuring safety compliance. This will mark the largest single investment made by the company in an engine plant and builds on the strategic investments made over the last 15 years, including the half-billion-dollar investment announcement for its Flint Engine plant in January 2023 for the production of the sixth generation of V-8 engines. The investment in the Tonawanda Propulsion plant will include new equipment, machinery, tools, and facility renovations. According to General Motors Company (NYSE:GM), the new engines are expected to be stronger than the current ones in use, benefit the fuel economy, and reduce carbon emissions. New York's governor, Kathy Hochul, says the project is likely to support 870 jobs at the plant, including several that were deemed at risk. The state intends to provide nearly $17 million in tax credits for the investment commitments. Having said that, the investment announcement is a shift from an earlier $300 million commitment from General Motors Company (NYSE:GM) to make EV drive units at the plant, which is being seen as yet another sign of automakers adapting to slower-than-anticipated demand for EVs. While we acknowledge the potential of GM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than GM and that has 100x upside potential, check out our report about this cheapest AI stock.
Yahoo
27-05-2025
- Automotive
- Yahoo
General Motors Company (GM) to Invest $888 Million in Tonawanda Propulsion Plant
General Motors Company (NYSE:GM) on Tuesday announced plans to invest $888 million in its Tonawanda Propulsion plant to support the production of the sixth generation of V-8 engines used in SUVs and full-size trucks. A group of technicians in a garage, inspecting car parts and ensuring safety compliance. This will mark the largest single investment made by the company in an engine plant and builds on the strategic investments made over the last 15 years, including the half-billion-dollar investment announcement for its Flint Engine plant in January 2023 for the production of the sixth generation of V-8 engines. The investment in the Tonawanda Propulsion plant will include new equipment, machinery, tools, and facility renovations. According to General Motors Company (NYSE:GM), the new engines are expected to be stronger than the current ones in use, benefit the fuel economy, and reduce carbon emissions. New York's governor, Kathy Hochul, says the project is likely to support 870 jobs at the plant, including several that were deemed at risk. The state intends to provide nearly $17 million in tax credits for the investment commitments. Having said that, the investment announcement is a shift from an earlier $300 million commitment from General Motors Company (NYSE:GM) to make EV drive units at the plant, which is being seen as yet another sign of automakers adapting to slower-than-anticipated demand for EVs. While we acknowledge the potential of GM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than GM and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: ChatGPT Stock Advice: Top 12 Stock Recommendations and 10 Cheap Rising Stocks to Buy Right Now. Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
27-05-2025
- Automotive
- Yahoo
Was Jim Cramer Right About General Motors Company (GM)?
We recently published a list of In this article, we are going to take a look at where General Motors Company (NYSE:GM) stands against other stocks that Jim Cramer discusses. In that older episode, a longtime shareholder asked Cramer whether he should swap his shares of General Motors Company (NYSE:GM) for Ford, given GM's buyback program and Ford's higher dividend. Cramer said: 'Oh well, you know one is in the charitable trust, Ford is. But this GM buyback of Mary Barra's has really worked, and I think the stock's going higher. […] Right now, stick with GM. I'm not going to urge you to sell. […] I can't say swap one for the other right now. You got the one with the buyback that's what matters.' Cramer was right not to panic as GM rose a modest 9.91% afterward. General Motors Company (NYSE:GM) is investing heavily in electric vehicle innovation, relaunching the Chevy Bolt with lower-cost lithium iron phosphate batteries to broaden market reach. A group of technicians in a garage, inspecting car parts and ensuring safety compliance. Comparing the two automakers again recently, here's what Cramer said about them on May 1st: 'You know, listen, Phil, you had an amazing interview with Mary Barra [GM CEO], I've got to ask you, it looks like that Ford has an edge on GM. When it comes to what's going on. In terms of tariffs. Because I think that Jim Farley for whatever reason makes much more in pure America than GM does. [Phil agreed]' Overall, GM ranks 7th on our list of stocks that Jim Cramer discusses. While we acknowledge the potential of GM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than GM and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
12-05-2025
- Automotive
- Yahoo
General Motors (GM) Fell On Increased Uncertainty Surrounding New Tariffs
Diamond Hill Capital, an investment management company, released its 'Large Cap Fund' first-quarter 2025 investor letter. A copy of the letter can be downloaded here. Markets exhibited a mixed performance in Q1 as the new presidential administration generated significant buzz with a flurry of actions, leaving investors uncertain about the future direction. The portfolio trailed the Russell 1000 Value Index benchmark in Q1. The strategy returned 1.36% (net) vs 2.14% returns for the index. To get an idea of the fund's best choices for 2025, check out its top 5 positions. In its first-quarter 2025 investor letter, Diamond Hill Large Cap Fund highlighted stocks such as General Motors Company (NYSE:GM). General Motors Company (NYSE:GM) is an automobile manufacturer. The one-month return of General Motors Company (NYSE:GM) was 5.23%, and its shares gained 5.16% of their value over the last 52 weeks. On May 9, 2025, General Motors Company (NYSE:GM) stock closed at $47.50 per share with a market capitalization of $45.67 billion. Diamond Hill Large Cap Fund stated the following regarding General Motors Company (NYSE:GM) in its Q1 2025 investor letter: "Other bottom contributors in Q1 included lululemon athletica, General Motors Company (NYSE:GM) and Capital One. Automobile manufacturer General Motors faces heightened uncertainty surrounding new tariffs along with overall macroeconomic concerns, which weighed on shares during the quarter. Credit card issuer Capital One — a new position in Q1 — faces a potential Department of Justice challenge to its merger with Discover, as well as concerns about weakening US consumers." A group of technicians in a garage, inspecting car parts and ensuring safety compliance. General Motors Company (NYSE:GM) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 68 hedge fund portfolios held General Motors Company (NYSE:GM) at the end of the fourth quarter compared to 64 in the third quarter. General Motors Company (NYSE:GM) posted revenue of $44 billion in the first quarter, up 2% year-over-year with wholesales also up 2%. While we acknowledge the potential of General Motors Company (NYSE:GM) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. In another article, we covered General Motors Company (NYSE:GM) and shared the list of high growth EV stocks to invest in. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
