General Motors (GM) announced on Wednesday that it will increase its quarterly dividend by 25% to 15 cents per share and initiate a new $6 billion stock buyback program.
The moves come as the company looks to enhance shareholder returns amid evolving market conditions and industry uncertainties.
The higher dividend, which now matches that of competitor Ford Motor, is expected to take effect with GM’s next scheduled payout in April. The share repurchase program includes an initial $2 billion in buybacks, anticipated to be completed during the second quarter.
GM CEO Mary Barra emphasized the company’s commitment to maintaining a strong financial position while returning capital to shareholders.
“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,” she said in a statement.
Since 2023, GM has authorized $16 billion in stock buybacks, reducing its outstanding shares to below 1 billion—achieving a target set earlier by CFO Paul Jacobson. Despite these efforts and consistent earnings performance, GM’s stock has declined more than 12% this year.
Analysts cite factors such as plateauing industry sales, potential regulatory changes, and limited growth prospects as contributors to investor concerns. The newly announced buyback program will be executed by JPMorgan and Barclays, with the final number of repurchased shares depending on GM’s stock price during the program’s term.
GM’s financial outlook for 2025 includes net income estimates ranging from $11.2 billion to $12.5 billion and adjusted automotive free cash flow between $11 billion and $13 billion. The company has emphasized that it remains financially strong and prepared to adapt to any policy changes that may impact the auto industry.
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