Gm Raises Quarterly Dividend, Initiates $ 6 Billion Stock Buyback

Detroit – General motors Is Raising Its Quarterly Dividend and Initiating a new $ 6 billion share repurchase program as the company attempts to reward investors amid slowing industry sales and profits.

GM Announced Wednsday It is Increasing Its Quarterly Dividend by 25% to 15 Kents Per Share – Matching that of Crosstown Rival Ford MotorThe Higher Dividend is expected to take effect with the company’s next planned payout, Scheduled to be annouted in April.

Under the $ 6 billion repurchase plan, $ 2 billion in Buybacks are expected to be completes during the second Quarter.

“The Gm Team’s Execution Continues to be Strong Across All Three Pillars of Our Capital Allocation Strategy, which are to reinvest in the business for profitable Growth, Mainten A Strongin A Strongin A Strongin A Sheet, and Return Capital to Our Sherholders, “said gm ceo Mary Barra in a news release.

Barra last month Suggested the company would continue to return capital to shareholders this year, pending board approval. Since 2023, The Automaker has Announced $ 16 billion in stock buyback Programs, resulting in the retiring of more than 1 billion outstanding shares.

Despite Such Actions and Reporting Strong Quarterly Results, Including regularly outperforming Wall Street’s ExpectationsShares of gm are down more than 12% this year.

Wall street analysts have cited plateauing industry sales, regulatory uncerty Around Tarifs And a Lack of Potential Growth Opportunities as All Weighting on the Stock.

Gm said the total number of shares ultimately burgt back Program. The program is being executed by Jpmorgan and Barclays,

Outside of the Accelerated Program, GM will have another 4.3 billion of capacity remains under its share repurchase authorizations “for addition, opoportunistic share repurchases,” The Company Said. That includes $ 300 million from its last $ 6 billion stock buyback Program from June.

As of the end of last year, gm had fewer than 1 billion shares outstanding – Achieving a target announced earlier in the year by gm cfo paul jacobson.

“We feel confident in our business plan, our balance sheet remains strong, and we will be agile if we need to respond to changes in public policy,” Jacobson Said in a statement. “The Repurchase Authorization Our Board Approved Continues A Commitment to Our Capital Allocation Policy.”

Gm’s 2025 guidance includes Net Income Attributable to StockHolders in a Range of $ 11.2 Billion to $ 12.5 Billion, or $ 11 to $ 12 per share; Adjusted Earnings Before Interest and Taxes (Ebit) of $ 13.7 Billion to $ 15.7 Billion, OR $ 11 to $ 12 Adjusted EPS; Adjusted Automotive Free Cash Flow of Between $ 11 Billion and $ 13 Billion.