Research memoGeneral Motors Company (GM) · NYSEMemo of October 9, 2026

GM dividend: cash coverage and yield

GM's latest quarterly rate is $0.18 per share, implying $0.72 a year if maintained. In the first half of 2026, automotive operating cash flow was about $5.6 billion, and after $3.4 billion of capital expenditure, about $2.2 billion remained before adjustments.

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How much does GM pay in dividends?

Dividends make a simpler claim on cash because they pay shareholders directly. GM’s latest quarterly rate of $0.18 implies $0.72 a year if maintained. The relevant test is whether cash remains after necessary investment. In the first half of 2026, automotive operating cash flow was about $5.6 billion. After $3.4 billion of capital expenditure, about $2.2 billion remained before adjustments. Management’s adjusted automotive free cash flow was $6.3 billion, but excluded restructuring payments still consumed cash.

Dividend per share against free cash flow per share (US$ per share)1.75Year to Dec 20217.20Year to Dec 20228.52Year to Dec 202312.44Year to Dec 202410.89Year to Dec 2025Free cash flow per share
What one share getsUS$ per share
Year to Dec 2025Year to Dec 2024Year to Dec 2023Year to Dec 2022Year to Dec 2021
Free cash flow per share (calculated)10.8912.448.527.201.75
Buybacks per share (calculated)6.186.268.121.720.00
Dividend per share0.570.480.360.180.00
Net share dilution (calculated)-13.8%-17.5%-5.8%-1.0%1.8%

Is GM's dividend covered by its cash?

Automotive cash from operations was $18,733 million. After $9,241 million of capital spending, the simple remainder was $9,492 million. Capital spending keeps factories productive and can also fund future programs, but GM does not provide a clean maintenance-versus-growth split.

GM reported adjusted automotive free cash flow of $10,595 million after management actions. That is not automatically the same as cash available to owners. Stock compensation may not consume cash immediately, but it gives employees a claim on the business. A stricter owner-cost view deducted $740 million of stock pay in 2023.

Where the cash wentUS$ millions
Year to Dec 2025Year to Dec 2024Year to Dec 2023Year to Dec 2022Year to Dec 2021
Real free cash flow (after stock pay) (calculated)9,4048,068
Dividends paid5385304772570
Shares bought back6,0127,06411,1152,5000
Returned to shareholders, share of real free cash flow (calculated)123.3%34.2%

What could change GM's dividend?

Dividends hold at $0.72 in the base case before rising gradually. The bear case cuts to $0.36, while the bull case reaches $1.44. The current quarterly rate is $0.18, and the cash-flow guidance range is $9,500 million to $11,500 million, leaving room for increases if vehicle cash generation holds.

What is GM's dividend yield at today's price?

GM’s apparent cash yield matters only after its carmaking and lending businesses are separated.

What an investor pays todayUS$ millions
Today (Oct 9, 2026)
Share price82.25
P/E, next 12 months (calculated)5.4x
Free cash flow yield (calculated)14.7%
Dividend yield (calculated)0.9%
From the full memo · 1. The business

General Motors Company (GM) designs and builds vehicles, then earns more through financing and services that support them throughout their lives.

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Where these numbers come from

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