GM (General Motors) Dividend Snapshot, #1 American Automaker

 
  • GM stock is currently offering a 4.8% dividend yield at the current price of about $32/share.
  • Dividend yield gives investors a sense of how much dividend income per share is spun off to investors compared to the current price of the share.
  • GM seems like a solid long term dividend play in spite of yearly lows as the market manages trade war issues that should ultimately reverse.
  • Long term the auto industry will need to adapt to rapidly changing technology and customer demands. GM appears to be making important investments to stay competitive.
  • Buffett’s Berkshire Hathaway picked up 1.4 million shares in August.
  • Second quarter 2018, GM made $2.4 billion in profit off of $36.8 billion in revenue.
If you were asked who the leader is in terms of autonomous driving technologies, one would probably answer TESLA! But what if I told you good old fashioned General Motors has the most advanced and highly rated self driving system among consumers. This is compared to all autonomous systems available today to consumers. That is right, a person could go plunk down a huge amount of money and drive off the lot with a Cadillac that essentially drives itself on the freeway and expressways. In addition, GM is making strategic partnerships with Honda and their Cruise Self Driving unit, which is valued at $15 billion. “Honda chose to collaborate with Cruise and General Motors based on their leadership in autonomous and electric vehicle technology and our shared vision of a zero-emissions and zero-collision world.”  

The Chevy Bolt is a popular electric vehicle and an example of GM’s commitment to the future of driving. Smile as you wave at gas stations and never burn your cash paying for gas again!

  GM stock trades at about $32/share and returns a quarterly dividend of .38/share. The stock price has bumped between $32 and $44 for over 5 years. Perhaps it is not going anywhere dramatic anytime soon, but in the meantime the company appears to be positioning itself for the future. I like the fact that Warren Buffett picked up some more shares recently, that indicates it may be a good value and dividend play. One strategy The Money Vikings deploy to conquer financial freedom is building a robust portfolio of dividend stocks. Check out Greg’s dividend portfolio: http://oracle.davidkanter.com/2018/10/07/dividend-income-update-over-1000-year/ Related: http://oracle.davidkanter.com/2018/03/30/i-still-think-tesla-is-cool/ *This is not individual stock advice. See a fiduciary financial professional with specific questions. Investing in any particular company has risk.  

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