Detroit – General Motors Amid slowing sales, the company attempted to reward investors, thereby boosting its quarterly dividend and launching a new $6 billion stock buyback program.
General Motors announced Wednesday it will increase its quarterly dividend by 25% to 15 cents per share – matching Crosstown rivals Ford electric motor. The higher dividend is expected to take effect with the company’s next plan to be announced in April.
Under the $6 billion buyback plan, it is expected to complete a $2 billion buyback in the second quarter.
GM CEO said: “The execution of the GM team remains strong in all three pillars of our capital allocation strategy, which is to reinvest for profitable growth, maintain a strong investment-grade balance sheet and will The capital is returned to our shareholders.” Mary Barra In the press release.
Bala last month It is recommended that the company continue to return capital to shareholders this year, pending approval from the board of directors. Since 2023, automakers have announced $16 billion in stock buyback The plan leads to retirement of more than 1 billion shares.
Despite such actions and reporting strong quarterly results, including regular performance over the Wall Street’s expectationsGM shares fell more than 12% this year.
GM, Ford and Stellantis stocks in 2025.
Wall Street analysts cite sales in the plateau industry, regulatory uncertainty Around the tariff And because everyone is weighing stocks, there is a lack of potential growth opportunities.
GM said the total number of shares that ultimately repurchased $2 billion accelerated share buybacks will be based on the average of daily sales weighted prices of GM common stock during the program term. The program is executing Morgan and Barclays.
The company said that in addition to the acceleration plan, GM will “conduct additional opportunity for stock buybacks” under its share buyback authorization. This includes $300 million of its last $6 billion in stock buybacks Plans start in June.
GM had less than 1 billion shares as of the end of last year – meeting the target announced by General Manager Paul Jacobson earlier this year.
“We are confident in our business plans, the balance sheet remains strong, and we will become agile if we need to respond to changes in public policy,” Jacobson said in a statement. Our Board of Directors approves continuing commitment to our capital allocation policy.”
General Motors 2025 Guide includes Shareholders can be attributed to the range of $11.2 billion to $12.5 billion, i.e. $11 to $12 per share; adjusted earnings for interest and taxes (EBIT) are $13.7 billion to $15.7 billion, or $11 to $12 adjusted Earnings per share; adjusted auto free cash flow between $11 billion and $13 billion.
