General Motors Corp announced today a dividend of two-bits per share for GM common stock. So if you're the holder of record as of November 16, 2007 you can cash in on December 10, 2007. So if you have 20 shares of GM common stock you'll have $5.00 in cold, hard and devalued American dollars. This dividend is unchanged from the previous quarter and represents a decision to return profits to shareholders, as opposed to reinvesting it in the company, which is something that GM should actually consider doing. [GM Media]
GM apparently feels it needs to pay a small dividend to prop up its share price, which determines how much it can borrow to offload the health car benefits to the UAW.
I wonder if the share price wouldn't actually go up right now if they decided NOT to pay any dividend and instead plow the money back into the right kind of product R&D / bringing over more models from Europe and Australia a little sooner - including T2B5 diesel engine options for the larger sedans plus all SUVs and small pickups.