General Motors Maintains, Announces $0.30 Quarterly Dividend

Loading...
Loading...
In a report published Wednesday, Morgan Stanley analyst Adam Jonas maintained an Overweight rating on
General MotorsGM
, following an announcement of GM's $0.30 quarterly dividend. According to the report, the new dividend implies approximately a 3% annual yield and a 25% payout ratio on 2014 earnings. “We estimate the annual dividend amount is around $0.5bn higher than market expectations heading into the auto show,” the report noted. “The divy puts GM on par with Ford's yield, exceeding all major global auto manufacturers with the exception of Daimler.” The report further asserted that the dividend should temper expectations over the timing and/or size of potential share buyback. The analysts believe most GM investors prefer dividends to buybacks anyway. GM closed Tuesday at $40.02 with shares trading up at 1.11 percent.
date
ticker
name
Price Target
Upside/Downside
Recommendation
Firm
Posted In: Analyst ColorReiterationAnalyst RatingsAdam JonasMorgan Stanley
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...