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John Wang
in
Stocks
April 27 22:07

GM cuts dividends and buybacks

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General Motors Co issued a statement concerning its stock policy. The company is suspending the quarterly cash dividend.
Changes applyc only to the common stock, as well as the share buyback programme. GM explains the change by the necessity to save more funds in order to survive the ongoing pandemic crisis.
The automaker is also extending its revolving credit agreement for three years, worth US$3.6 billion up to April 2022.
GM is not the only large company to cut its dividends and buybacks because of the crisis. Some of the latest examples include Wendy’s, Carnival and Intel.