General Motors (GM) Announces Higher Dividend and Stock Buyback
General Motors (GM) has announced a 25% increase in its quarterly dividend to $0.15 per share, aligning with its competitor Ford Motor. Alongside this, the company has introduced a $6 billion stock repurchase program, with $2 billion of the buyback set to be completed in the second quarter of 2025.
GM’s Focus on Investor Returns
The move comes as GM aims to reward investors, despite challenges in the automotive industry. CEO Mary Barra emphasized that GM remains committed to:
- Profitable business growth
- Maintaining a strong balance sheet
- Returning value to shareholders
Since 2023, GM has authorized $16 billion in stock buybacks, leading to the retirement of over 1 billion shares. However, despite these efforts, GM’s stock has declined by more than 12% in 2025.
Stock Buyback Details
Under the new repurchase program:
- $2 billion will be repurchased through an accelerated share repurchase plan (ASR).
- The total number of shares repurchased will depend on the average stock price during the buyback period.
- Investment banks JPMorgan and Barclays are overseeing the transaction.
- An additional $4.3 billion remains available for future share repurchases.
GM’s 2025 Financial Outlook
GM has provided its 2025 earnings forecast, expecting:
- Net income between $11.2 billion and $12.5 billion
- Adjusted EBIT (earnings before interest and taxes) between $13.7 billion and $15.7 billion
- Automotive free cash flow ranging from $11 billion to $13 billion
GM’s Strategy Moving Forward
Despite slower industry growth, stock volatility, and regulatory concerns, GM remains confident in its financial strength. CFO Paul Jacobson highlighted that the company is prepared to adjust its strategy based on market conditions and public policies.
This latest move reinforces GM’s commitment to shareholders, ensuring long-term value despite industry challenges.
