(Adds details on new CFO, paragraph 5)
By Ben Klayman
DETROIT Jan 14 General Motors Co will
pay the first quarterly dividend on its common stock in almost
six years, marking another step in the U.S. automaker's recovery
from its bankruptcy in 2009 and sending shares up 3.2 percent in
The No. 1 U.S. automaker, which last paid a dividend in June
2008 before it moved to save money during the U.S. recession,
said it will pay shareholders a quarterly dividend of 30 cents a
share, payable on March 28 to shareholders of record on March
18. In 2008, its quarterly dividend was 25 cents a share.
"This return to shareholders is consistent with our capital
priorities and is an important signal of confidence in our plans
for a continuing profitable future," Chief Financial Officer Dan
Ammann said in a statement.
Ammann, who said on Sunday that GM was closer than ever to
paying a dividend, will become GM's president on Wednesday.
GM also named Chuck Stevens as the company's new CFO,
effective on Wednesday. He had been CFO of GM North America.
Investors have been pushing GM to return cash to them in the
form of a dividend or a stock buyback, especially since the U.S.
Treasury sold the last of its stake in the company last
The dividend reintroduction by GM, which is showing new cars
and trucks this week at the Detroit auto show,
is likely to attract investors who buy stocks that generate
Weak industry demand drove GM to seek bankruptcy protection
in 2009 and it emerged as a leaner operation with more cash on
hand with the help of a $49.5 billion U.S. taxpayer bailout.
GM already pays a dividend on preferred stock. Rival U.S.
automaker Ford Motor Co resumed paying a common dividend
in March 2012 after suspending it for more than 5-1/2 years.
Last week, Ford boosted its quarterly dividend by 25 percent to
12-1/2 cents per share.
GM ended the third quarter last year with total automotive
liquidity of $37.3 billion.
GM stock rose to $41.29 in after-hours trading on Tuesday,
compared with the closing price of $40.02 on the New York Stock
(Editing by Matthew Lewis)