DETROIT – General Motors has announced a 25% increase in its quarterly dividend to 15 cents per share, aligning it with rival Ford Motor. Additionally, the company is launching a $6 billion share repurchase program. These moves aim to reward investors despite challenges in the automotive industry, including slowing sales and profits. The higher dividend is set to take effect with the next payout, planned for April. Under the repurchase plan, $2 billion in buybacks are expected to be completed in the second quarter. GM CEO Mary Barra highlighted the company’s strong execution across its capital allocation strategy, which focuses on reinvesting in the business, maintaining a solid balance sheet, and returning capital to shareholders. Since 2023, GM has announced $16 billion in stock buybacks, retiring over 1 billion shares. Despite strong quarterly results, GM’s shares have fallen over 12% this year due to plateauing industry sales and regulatory uncertainties. The $2 billion accelerated share repurchase will depend on the average daily volume-weighted price of GM’s stock, executed by JPMorgan and Barclays. GM will retain $4.3 billion for further opportunistic repurchases. GM CFO Paul Jacobson expressed confidence in the company’s business plan and balance sheet strength. GM’s 2025 guidance projects net income between $11.2 billion and $12.5 billion, adjusted EBIT of $13.7 billion to $15.7 billion, and adjusted automotive free cash flow of $11 billion to $13 billion. — news from CNBC
