kept its dividend intact Monday.
The Detroit auto giant said it would pay its regular 50-cent quarterly dividend June 10 to holders of record May 19. The announcement comes just days after GM shares were hammered by rating agency Standard & Poor's decision to
tow GM's bonds into the junkyard, citing the company's faltering competitive position.
The S&P move is likely to increase GM's borrowing costs and
raised speculation in some quarters that the company will have to bring its payout down. With the stock fetching around $31 in the wake of investor Kirk Kerkorian's big tender offer announcement last week, GM stock yields nearly 6%. That is rich in the current environment, especially considering that GM is on track to burn some $5 billion in cash this year by some estimates.
GM rose 63 cents Monday to close at $31.39.