On Wednesday July 22, 2015 I purchased 12 shares of General Motors Corporation (GM) for $30.24. The recent drop caught my attention and I should have bought the stock below $30 today. GM reports earnings before the bell tomorrow morning. We could get a quick bump if it comes out better than expected. If not and it drops can reinvest a nice dividend yield. At the current dividend rate of 0.36 per share this will add an additional $17.28 to my annual dividend total not counting reinvestments.
Although not much of a track record and the bailout I decided to pull the trigger. Give the new company a chance and think it is a decent value. The stock is lower than it was when it IPO'd again and now has a dividend that was recently increased by 20% with some $9K bonuses that went to several factory workers a few months ago. Activists have succeeded in convincing them to focus on buybacks too even though I prefer the dividend method there is room for both. Earnings can be inconsistent with autos and at 12 shares I am relying on them for a small portion in a much larger portfolio of income replacement.
What do you think of GM? Good value move or too risky? Future dividend grower or not?
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