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2mo ago

GM Announces Dividend Increase and $6 Billion Stock Buyback Program

The automaker boosts shareholder returns with a 25% dividend hike and a new repurchase initiative, reflecting confidence in its financial strategy and EV investments.

The new GM logo is seen on the facade of the General Motors headquarters in Detroit, Michigan, U.S., March 16, 2021. REUTERS/Rebecca Cook/File Photo
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Overview

  • General Motors raised its quarterly dividend by 25%, from $0.12 to $0.15 per share, effective April 2025.
  • The company announced a $6 billion share repurchase program, with $2 billion set for an accelerated buyback in the first half of the year.
  • CEO Mary Barra emphasized GM's focus on balancing shareholder returns with investments in EV technology and maintaining a strong balance sheet.
  • GM plans to allocate $10-$11 billion in capital spending and over $8 billion in R&D for 2025, targeting growth in both traditional vehicles and EVs.
  • Despite a 12% drop in GM's stock earlier this year, the announcement reflects confidence in achieving 2025 financial targets, including $11-$12 billion in net income.