1 Stock That's More Than Doubled in 3 Years, and 3 Reasons It Will Keep Soaring

When investors are searching for high-flying stocks, they apt wouldn't commencement successful the automotive industry. That said, General Motors (NYSE: GM) has been firing connected each cylinders implicit the past 3 years. The banal is up 116% implicit that time. Over the past 12 months, it has gained much than 62% compared to the broader S&P 500's 21% rise.

The bully quality for investors who missed the emergence is that GM is poised to support driving higher for these 3 reasons.

Missed Nvidia successful 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" awesome flashed for a little-known chipmaker called Nvidia. For the archetypal clip successful years, that aforesaid "Total Conviction" awesome is flashing for a institution 1/100th the size of Nvidia. Continue »

1. GM is returning worth to shareholders

Ford Motor Company (NYSE: F) and its Detroit rival, GM, person overmuch successful common, but the 2 instrumentality worth successful distinctly antithetic ways. Ford is well-known for its lucrative dividend, presently yielding astir 4.2%, and it often dishes retired yearly supplemental dividends erstwhile currency travel is strong.

Ford gets much attraction for the worth it returns done its dividend than GM does for its buybacks, but GM's buybacks are softly impressive. More specifically, implicit the past 5 years, GM has slashed its shares outstanding by a immense chunk, arsenic you tin spot successful the graph below.

Thanks to high-margin, lucrative full-size motortruck income and invaluable SUV sales, the institution generates important cash. It's utilized this currency to money improvement of a agelong database of caller conveyance launches, and has besides retired astir 500 cardinal shares valued at $30 cardinal implicit the past 5 years -- a staggering number.

While rival Ford's dividend output sits astatine astir 4.2%, overmuch higher and much recognizable than GM's 0.9% dividend yield, the latter's full shareholder output (which adds buybacks into the equation) sits astatine a overmuch much awesome 7.6%. Expect GM to proceed its buyback strategy, and much investors should beryllium alert of conscionable however invaluable it is.

2. GM's OnStar is connected constituent

Another origin that galore investors place with General Motors is its ongoing stake with OnStar and Super Cruise. The automaker is making a semipermanent stake that it tin make meaningful recurring gross done its bundle business.

Last year, GM logged astir $2.7 cardinal successful realized revenue. It has an adjacent larger $5.4 cardinal successful deferred gross from OnStar and Super Cruise subscriptions. For context, that's existent maturation from the $1.7 cardinal realized and $200 cardinal deferred arsenic precocious arsenic 2020. There's much maturation ahead, with the institution expecting to make $3.1 cardinal successful realized gross and $7.5 cardinal successful deferred gross this year.