General Motors Increases Dividend by 25% and Authorizes $6 Billion Share Repurchase

By Bobby Samwell • Wednesday, February 26 11:19 • Permanent Link

General Motors (NYSE: GM) has announced a series of capital allocation decisions following the approval of a new share repurchase plan and an increase in the quarterly common stock dividend rate.

The board of directors has approved a $0.03 per share increase in the quarterly common stock dividend rate, raising it to $0.15 per share from the previous $0.12 per share. This represents a 25% increase in the dividend rate.

In addition, General Motors has authorized a new $6 billion share repurchase plan. The company has entered into an accelerated share repurchase (ASR) program to execute $2 billion of the share repurchase authorization. The ASR program is expected to conclude in the second quarter of 2025 and will be executed by Barclays and J.P. Morgan.

It's worth noting that in 2024, GM’s weighted average common shares outstanding was 1.055 billion, and as of Dec. 31, 2024, the company had less than 1 billion total shares outstanding.

Furthermore, GM's capital spending in 2025 is expected to be in the range of $10 billion * $11 billion, including investments in the company's battery cell manufacturing joint ventures. Spending on research and product development is expected to be more than $8 billion.

Mary Barra, Chair and CEO of General Motors, emphasized the company's commitment to its capital allocation strategy, which includes reinvesting in the business for profitable growth, maintaining a strong investment-grade balance sheet, and returning capital to shareholders.

These decisions come as GM continues to focus on its portfolio of both traditional internal combustion engine vehicles and electric vehicles, with plans to advance technology for safer, smarter, and lower emission transportation.

As of now, GM's share repurchase program has no expiration date and will be executed in accordance with applicable securities laws and regulations. The company also has $4.3 billion of remaining capacity under its share repurchase authorizations for additional, opportunistic share repurchases. Following these announcements, the company's shares moved 5.6%, and are now trading at a price of $49.33. For the full picture, make sure to review General Motors's 8-K report.

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