What were the dividends over the last three years?
Both Ford and GM are in the auto production industry, which for the last five to ten years has been a poor industry to be in. To top it off, this stock has been one of the worst performers in its industry.
Gm trades earned over $6.5 per share in 2004 and paid a $2.00 dividend, that's over 5%. It's a liquid stock.
Over the past three years GM has announced and quarterly dividend of $0.50.
÷ 2004 - $2.00
÷ 2003 - $2.00
÷ 2002 - $2.00
GM's policy states that dividends may be paid on common stock only when, as, and if declared by GM's Board of Directors in its sole discretion. GM's policy is to distribute dividends on its $1-2/3 par value common stock based on the outlook and indicated capital needs of the business.
Most stocks in the auto production industry have been steadily growing revenue and impressive earnings over the past three years.
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The stockings were hung
Wood - Creative Commons stock photoLike its peers, GM's stock earnings per share have grown at a very high rate over past three years, even though their stocks actually declined a bit last year.
Stock Industry
TTM Revenue Growth % 4.1 4.39
3yr Revenue Growth % 4.6 8.09
TTM EPS Cont. Ops. % -1.6 282.98
3yr EPS Cont. Ops. % 41 23.81
Sustainable Growth Rate % 7.3
GM stock has a very high dividend yield when compared with its industry peers. Normally high dividend yields can be associated with companies that are more mature or one's that have limited growth opportunities. Note that GM's stock dividend has been extremely stable over the past five years.
Stock Industry
Dividend Yield % 6.5 2.11
5yr Dividend Growth % 0 -7.45
Over the past three years Ford's quarterly dividend has been a...