GM Dividend History: 0.79% Yield · $0.18 quarterly | MerryDiv
📈 GM pays a $0.69 annual dividend ($0.18 quarterly) with a current yield of 0.79% at a share price of $87.76.
📉 The company operates with an elevated payout ratio of 60.9%, utilizing the upper end of the 60–75% classification range.
📊 Historical dividend per share has declined significantly, showing a CAGR of -6.5% from 2014 to 2025.
🌍 GM generates revenue through vehicle sales under brands like Chevrolet and Cadillac, as well as fleet contracts and financial services.
⚠️ The elevated payout ratio limits the company's ability to increase dividends aggressively if earnings face cyclical downturns.
📈 The current 0.79% yield is significantly higher than the five-year average of 0.45%, reflecting a recovery in per-share payments.
Bullish Signals
- The current dividend yield of 0.79% is well above the company's five-year average yield of 0.45%, indicating a recent recovery in per-share payments.
- Three consecutive years of dividend increases demonstrate a rebuilding pattern in the company's payout history.
Risk Factors
- The company maintains an elevated payout ratio of 60.9%, which leaves limited room for aggressive dividend increases if earnings decline.
- The long-term compound annual growth rate (CAGR) of -6.5% from 2014 to 2025 reflects a significant historical decline in per-share dividend payments.
Full Analysis
General Motors (GM) is currently paying a quarterly dividend of $0.18 per share, resulting in an annualized payout of $0.69 and a yield of 0.79% based on a stock price of $87.76. The company, a global automotive leader with brands including Chevrolet, Cadillac, and GMC, operates across segments such as GM North America, GM International, Cruise, and GM Financial. Its business model encompasses vehicle sales, fleet supply contracts, financing solutions, and a growing portfolio of software-enabled subscription services.
The dividend profile for GM presents a mixed picture characterized by a recovering payout but elevated financial metrics relative to its earnings. The company currently utilizes 60.9% of its earnings to fund dividends, a ratio classified as elevated (within the 60–75% range). This high payout ratio leaves limited room for aggressive increases and reduces the safety buffer if earnings contract due to the cyclical nature of the automotive sector.
Historical data indicates a long-term decline in per-share dividend payments, with a compound annual growth rate (CAGR) of -6.5% from 2014 to 2025. While per-share payments started at $1.20 in 2014 and dropped to $0.57 by 2025, the current yield sits well above the five-year average of 0.45%, reflecting a recent recovery in per-share amounts. The stock carries a beta of 1.321, indicating above-average price volatility that may suit investors prioritizing exposure to a major automaker over stable income.
