General Motors Co. has announced it will pay a quarterly dividend this March, the first time the U.S. auto maker has paid a dividend to shareholders since May 2008.

The payout will cost GM nearly $1.67 billion a year, based on the amount of GM shares outstanding, according to FactSet.

The move to pay a dividend comes after the Treasury Department sold its final shares in the Detroit auto maker last month. That move made it much easier for the company to reinstate a dividend and select a new chief executive with greater freedom to pay market compensation, which the government had restrained for several years.

"The board understands that our investors should share in this success and is pleased to announce a quarterly dividend for our common stockholders," said Chairman and Chief Executive Dan Akerson.

GM on Tuesday said it would pay a quarterly dividend of 30 cents per share on its common stock, payable March 28 to all common stockholders on record as of March 18.

Through the third quarter of 2013, GM has achieved 15 straight quarters of profitability, a sharp turnaround following one of the largest bankruptcies in U.S. history after turmoil in financial markets and high fuel prices dented auto sales.

The U.S. auto industry in 2013 had its best sales year since 2007, and executives have said they expect gains to continue in 2014, though at a slower pace.

Write to John Kell at john.kell@wsj.com

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