GM’s stock surges after reinstatement of dividend 2 years after it was suspended

Shares of General Motors Co.
GM,
+2.79%
surged 1.9% in premarket trading Friday, after the automobile maker said it will reinstate the payment of a quarterly dividend, more than two years after suspending it, and resume “opportunistic” repurchases of its common stock. The new quarterly dividend of 9 cents a share will be payable Sept. 15 to shareholders of record on Aug. 31. Based on Thursday’s closing price of $38.72, the annual dividend rate implies a dividend yield of 0.93%, compared with the yield for rival Ford Motor Co.
F,
-1.30%
of 3.72% and the implied yield for the S&P 500
SPX,
-1.09%
of 1.53%. GM suspended its dividend in April 2020 in response to financial uncertainties resulting from the COVID-19 pandemic. The company said Friday it has boosted the authorization for its current share-repurchase program to $5 billion from $3.3 billion. GM’s stock has gained 7.2% over the past three months, while Ford shares have soared 25.7% and the S&P 500 has gained 9.8%.