Automaker responds to investor demands with accelerated share repurchase program
General Motors (GM) is delivering for its shareholders, announcing a dividend increase and a fresh $6 billion stock buyback program after investors pushed for more capital returns.
The automaker revealed on Wednesday that it would raise its quarterly dividend by $0.03 to $0.15 per share—its first increase since 2023. Additionally, GM is launching a $6 billion share repurchase authorization, with $2 billion allocated for an accelerated share repurchase (ASR) program set to take place soon. The news sent GM stock up 3% in premarket trading.
“The GM team’s execution continues to be strong across all three pillars of our capital allocation strategy, which are to reinvest in the business for profitable growth, maintain a strong investment-grade balance sheet, and return capital to our shareholders,” said CEO Mary Barra.
The announcement comes after GM’s fourth-quarter earnings report last month, when investors were disappointed by the absence of a new buyback plan. Last year, the company initiated a $6 billion repurchase program alongside a $10 billion ASR and a 33% dividend hike.
CFO Paul Jacobson noted that the board sought a “prudent” way to expand shareholder returns, and the new authorization fulfills that commitment. He emphasized GM’s financial flexibility, stating, “The repurchase authorization our board approved continues a commitment to our capital allocation policy.”
Looking ahead, GM expects 2025 capital spending to remain in the $10-$11 billion range, including investments in battery manufacturing. The company also projected 2025 profits of $13.7 billion to $15.7 billion and EPS of $11 to $12, while accounting for potential shifts in trade policy.
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