General Motors (GM) has announced a 25% increase in its quarterly dividend and a new $6 billion share repurchase program, signaling confidence in its financial position and future growth. The dividend hike, from $0.12 to $0.15 per share, will take effect with the next planned dividend in April 2025.
As part of the buyback initiative, GM has entered into an accelerated share repurchase (ASR) program to buy back $2 billion worth of shares in the first half of 2025, with the remaining $4 billion to be repurchased at the company’s discretion. The ASR program, executed by Barclays and J.P. Morgan, is expected to conclude in the second quarter of 2025.
It is important to note that the automaker recently completed a $10 billion buyback program, repurchasing 87 million shares in the open market and reducing its outstanding shares to 995 million. With this new authorization, GM aims to continue returning capital to shareholders while maintaining a strong balance sheet and supporting long-term business growth.
Moreover, GM expects a net income between $11.2 billion and $12.5 billion in 2025, aligning closely with analysts’ projections. Capital expenditures for the year are set between $10 billion and $11 billion, including investments in battery cell manufacturing, while research and development spending is expected to exceed $8 billion.
The company’s financial strategy focuses on reinvesting for profitable growth, strengthening its balance sheet, and delivering shareholder value. GM anticipates a $2 billion reduction in EV operating losses in 2025, reflecting efforts to improve profitability in its electric vehicle segment.
Shares of GM have risen about 18% over the past year, keeping pace with the broader S&P 500 index. As the company continues executing its capital allocation strategy, its latest moves highlight confidence in long-term financial stability and market performance.
