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If you're considering investing in General Motors (GM), the dividend yield is definitely worth examining. GM's dividend yield is around 4.3%, which is relatively higher than the industry average.
This attractive yield is due in part to GM's history of paying consistent dividends. The company has paid dividends for over 90 years, making it a reliable choice for income investors.
As of 2022, GM's dividend payout ratio is around 20%, which is within a healthy range. This means that the company is generating enough earnings to support its dividend payments without straining its finances.
GM's dividend growth has been steady over the years, with a 5-year average annual growth rate of around 10%. This growth rate is higher than the industry average, making GM an attractive choice for investors seeking long-term dividend growth.
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What Is GM's Dividend Yield?
General Motors's dividend yield is a crucial metric for investors to consider. The current dividend yield of General Motors is 1.01%. This means that for every dollar invested in General Motors stock, you can expect to earn approximately 1.01 cents in dividend payments per year.
What Is Motor's Yield?
General Motors's dividend yield is 1.01%. This means that for every $100 invested in the company's stock, investors would receive $1.01 in dividends per year.
A low payout ratio of 8.82% indicates that the company has a strong financial position and can invest in growth opportunities. This is a positive sign for investors.
The annual dividend is $0.48 per share, which is the total amount of dividends paid out to shareholders in a year. This is a relatively low dividend payment compared to other companies.
General Motors pays dividends on a quarterly basis, with the next dividend payment planned on March 20, 2025. This is a regular and consistent payment schedule.
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Yield
GM's dividend yield is a crucial metric for investors to understand the company's dividend payments. It's calculated by dividing the annual dividend payment by the stock's current price.
In the case of General Motors Company, the dividend yield is 1.01%, which means that for every $100 invested in the company's stock, investors would receive $1.01 in dividends per year. This is based on the company's annual dividend of $0.48 per share.
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The dividend yield can fluctuate over time, as we can see from GM's dividend yield graph. This graph is a visual representation of the company's dividend yield over the last 12 months, which can be useful for investors to identify any trends or patterns in the company's dividend payments.
Here are the recent dividend payments made by GM, along with their corresponding yields:
GM's dividend yield has fluctuated over the years, ranging from 0.23% to 5.05%.
About GM Company
General Motors Company is a well-established automaker with a rich history.
The company's dividend grades are determined by a proprietary Dividend Grader that assesses three key pillars: dividend valuation, dividend growth, and dividend strength.
This grading system provides investors with a useful framework for evaluating the attractiveness of GM's stock based on its dividend.
GM's dividend valuation grade is an important consideration for investors, as it indicates whether the company's stock is fairly valued in relation to its dividend payments.
The company's dividend growth grade suggests that GM has a history of consistently increasing its dividend payments over time, which is a positive sign for investors.
GM's dividend strength grade is also a crucial factor, as it indicates the company's ability to maintain its dividend payments in the face of economic downturns or other challenges.
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GM Company's History
General Motors Company has a dividend history that can be evaluated to understand its reliability and long-term growth trends.
The company's average dividend yield over the past five years is 0.9%.
Analyzing General Motors Company's dividend history is a good first step for assessing payment sustainability.
Its compound annual dividend per share growth rate over the last five years is -20.6%.
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GM Financials
GM's dividend yield is a relatively modest 1.0%, ranking in the 37th percentile among U.S.-listed dividend-paying stocks.
This means General Motors Company's dividend yield is not particularly high, which may not be ideal for investors seeking higher income from their dividend stocks.
The company's compound average dividend growth rate over the last five years is a concerning -20.6%.
This significant decline in dividend growth raises questions about General Motors Company's ability to sustain its dividend payments in the long term.
To put this in perspective, a company with a high dividend yield and stable dividend growth is generally more attractive to investors.
A long history of earnings and dividend growth is a key characteristic of well-financed companies that AAII looks for in its Dividend Investing strategy.
Here are the key characteristics of well-financed companies that AAII focuses on:
- A long history of earnings and dividend growth
- Positive free cash flow
- Low to reasonable valuations
- A solid outlook for both price appreciation and higher dividends in the future
Investor Considerations
When evaluating General Motors Company's dividend yield, it's essential to consider the Dividend Valuation Score, which is a key metric in the Dividend Grader.
The Dividend Valuation Score of 17 for General Motors Company translates to a Dividend Valuation Grade of A and is considered Deep Value.
Stocks with a value score from 0 to 20 are considered deep value, which means General Motors Company is indeed a deep value stock.
This score is not variable, meaning it must consider both relative dividend yield and shareholder yield to be valid.
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Does Motors Offer Good Salary?
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General Motors's dividend yield is lower than the Consumer Cyclical sector average. This suggests that the company may not be prioritizing shareholder returns.
The company's dividend payment history isn't explicitly mentioned in the article sections, but the comparison to the sector average implies that investors may not be getting the best return on their investment.
Investors should consider the company's overall financial health and growth prospects before making a decision about investing.
GM Company's Valuation
General Motors Company's dividend yield can be used to calculate a valuation estimate, indicating if this stock is expensive relative to its historical norm.
The company's Dividend Valuation Score is 17, which translates into a Dividend Valuation Grade of A and is considered Deep Value.
Stocks with a value score from 0 to 20 are considered deep value, and General Motors Company falls into this category.
A score of 17 indicates that General Motors Company's stock is undervalued, suggesting a potential buying opportunity for investors.
The Dividend Valuation Score is the percentile rank of the average of the percentile ranks of the relative dividend yield and shareholder yield.
Warning Signs for Investors
As an investor, it's essential to be aware of potential warning signs that can impact your returns. A company's high dividend payout doesn't necessarily mean it's a safe investment.
If a company has a history of consistently increasing its dividend payout, it's a good sign. However, if it's been paying dividends for a short period, it's a red flag.
A low dividend payout ratio is a positive indicator, typically below 60%. General Motors Company's payout ratio is about 8.82%, which is a reassuring sign.
However, a company's dividend safety can change over time, and it's crucial to regularly monitor its financial performance and dividend payment history.
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Peer
When evaluating GM as an investment, it's essential to consider its peer companies. Ford Motor Co, for example, has a significantly higher dividend yield of 6.73%.
Looking at the payout ratio, we can see that Ford Motor Co has a payout ratio of 42.6%, which is much higher than GM's 7.4%. This suggests that Ford Motor Co is returning a larger portion of its profits to shareholders.
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The dividend per share (DPS) for Ford Motor Co is $0.63, which is higher than GM's $0.48. Gentex Corp also has a lower DPS of $0.48.
Here's a comparison of the dividend yields for these three companies:
It's worth noting that Gentex Corp has a lower dividend yield than both Ford Motor Co and GM, but its payout ratio is still relatively low at 25.4%.
Frequently Asked Questions
What is GM yield?
The Dividend Yield, also known as GM yield, is 0.88%, indicating the annual return on investment from dividend payments. This is calculated by dividing the annual dividend of $0.48 by the stock's current price.
Sources
- https://www.koyfin.com/company/gm/dividends/
- https://stockanalysis.com/stocks/gm/dividend/
- https://fullratio.com/stocks/nyse-gm/dividend
- https://www.aaii.com/investingideas/article/20383-is-general-motors-company-gm-a-good-dividend-stock
- https://www.dividend.com/stocks/consumer-discretionary/automotive/automobiles/gm-general-motors-company/
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