General Motors Boosts Shareholder Returns with 25% Dividend Hike, Unveils $6 Billion Buyback

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Automotive manufacturing giant General Motors announced today a significant increase in its quarterly dividend and a new $6 billion share repurchase program, signaling confidence in its financial position despite industry headwinds. The automaker is raising its dividend by 25%, from ¢12 cents to 15 cents per share, aligning with contender Ford’s payout. The dividend increase will take effect with the next scheduled payment announcement in April.

The $6 billion share repurchase program will begin with a $2 billion accelerated buyback during the second quarter, carried out by JPMorgan and Barclays. The final number of shares repurchased will depend on the average daily volume-weighted value of GM’s common stock during the program’s term.

Following the accelerated program, the Detroit-based company will retain $4.3 billion in share repurchase authorization for opportunistic buybacks, including $300 million remaining from a previous $6 billion program. This comes after $16 billion in buyback programs since 2023, which have retired over 1 billion shares, bringing the total outstanding shares to below 1 billion by the end of last year.

GM CEO Mary Barra emphasized the company’s strong execution across its capital allocation strategy, balancing reinvestment in profitable growth, maintaining a strong balance sheet, and returning capital to shareholders. CFO Paul Jacobson echoed this sentiment, citing confidence in the company’s business plan and balance sheet strength. GM projects that the 2025 net income attributable to stockholders will range between $11.2 billion and $12.5 billion. The adjusted EBIT is expected to fluctuate between $13.7 billion and $15.7 billion, while adjusted automotive free cash flow will be $11 billion to $13 billion.