General Motors to resume paying dividend after 6 years

General Motors Co will resume paying a quarterly dividend for the first time in nearly six years. The new 30-cent dividend is payable in March, the company announced on Tuesday, as it named a new Chief Financial Officer (CFO).

The Detroit-based carmaker hasn't paid a dividend since June 2008, when it suspended its 25-cent dividend as it spiraled into debt and eventual bankruptcy.

General Motors was widely expected to restore its dividend after the US government sold its remaining stake in the company late last year. The Treasury received the stake in 2009 in exchange for a $50 billion bailout that saved General Motors from financial ruin. It ended up losing about $10 billion on the bailout.

General Motors competitor Ford Motor Co said last week that it would increase its quarterly dividend to 12.5 cents per share, up from 10 cents. It was the second time Ford has raised the dividend amount since it reinstated its dividend in 2012.

Like General Motors, Ford halted its dividend for six years during the US financial crisis.

General Motors CEO Dan Akerson had hinted that a dividend might be coming. Akerson told reporters last month that since General Motors retired preferred stock that carried high dividend rates and payments, it now has enough money to maintain capital spending and reward shareholders.

General Motors has made more than $21 billion in profits since emerging from bankruptcy in 2009.

The announcement came the day before Akerson is expected to step down as CEO. Mary Barra was named the automaker's new CEO last month.

General Motors also announced Tuesday that Chuck Stevens will become CFO on Wednesday. General Motors's previous CFO, Dan Ammann, will become the company's president.

Stevens had been CFO of General Motors's North America division.

(Associated Press)