GM approves new share buyback, dividend increase

Investing.com -- General Motors announced a new $6 billion share repurchase authorization, including a $2 billion accelerated share repurchase (ASR) program, and a dividend increase of $0.03 per share.

The company said its quarterly dividend will rise to $0.15 per share, up from $0.12, beginning with the next planned dividend in April 2025.

"The GM team's execution continues to be strong across all three pillars of our capital allocation strategy," said GM Chair and CEO Mary Barra. "We are growing our business thanks to our broad, deep, and compelling portfolio of ICE vehicles and EVs."

The ASR program will see GM advance $2 billion to executing banks to repurchase and retire its common stock. The final number of shares repurchased will be based on GM’s average daily trading price during the program, which is expected to conclude in Q2 2025.

Outside of the ASR, $4.3 billion remains available for additional opportunistic share repurchases.

"Our balance sheet remains strong, and we will be agile if we need to respond to changes in public policy," said CFO Paul Jacobson.

GM’s capital spending for 2025 is projected at $10 billion - $11 billion, including investments in battery cell manufacturing joint ventures. Research and development spending is expected to exceed $8 billion.

As of December 31, 2024, GM had fewer than 1 billion shares outstanding, down from a 2024 weighted average of 1.055 billion.

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