GM resumes quarterly dividend payment after more than two years

General Motors Co said on Friday it would resume quarterly dividend payments, suggesting the automaker is confident it has put the worst risks from the pandemic and economic turbulence of the past few months behind it.

The automaker had suspended dividend payments and share buybacks in April 2020 after the global coronavirus pandemic hit sales and affected production, forcing the company to conserve cash during the crisis. The first dividend of 9 cents per share on the company's common stock will be paid on September 15, 2022, the automaker said in a statement. "Progress on these key strategic initiatives has increased our visibility and strengthened confidence in our ability to fund growth while returning capital to shareholders," GM Chief Executive Mary Barra said, referring to the company's plans for electric vehicle (EV) expansion and domestic battery manufacturing infrastructure. Upstate rival Ford Motor (NYSE:F) Co. also said in July it would bring its dividend back to 15 cents per share before the pandemic. GM shares rose more than 2% to $ 39.36 in pre-market trading. GM shares are down 33% so far this year, despite the company sticking to upbeat profit outlooks and telling investors last month that production cuts from semiconductor shortages were easing. Last year, the company raised its spending plans for electric and autonomous vehicles to $35 billion by 2025 to catch up with electric vehicle leader Tesla (NASDAQ:TSLA) Inc. Meanwhile, GM added that it will continue its opportunistic share buybacks and that its board of directors has increased the capacity under the company's current buyback program to $5.0 billion of common stock from the $3.3 billion previously covered by the program.