General Motors (GM) announced on Wednesday that it will raise its quarterly dividend by 25% and initiate a new $6 billion share buyback program to enhance shareholder value and return excess cash.

The U.S. automaker plans to repurchase $2 billion in shares by mid-2025, with the remaining buybacks occurring at the company’s discretion.

GM Boosts Dividend to 15 Cents Per Share

Starting April 2025, GM will increase its quarterly dividend from 12 cents to 15 cents per share.

This move follows the $10 billion share buyback program GM introduced in November 2023, which was fully completed in Q4 2024. The company repurchased 87 million shares in the open market, reducing its total outstanding shares to 995 million, meeting its target of staying below 1 billion shares.

Additional $6 Billion Share Buyback Approved

In June 2024, GM authorized another $6 billion share repurchase, with $300 million remaining outstanding.

“Moving forward, we expect to continue returning excess capital to our shareholders and further reducing the share count,” said GM CFO Paul Jacobson during the company’s Q4 earnings call.

GM Balances Shareholder Returns with EV Investments

While rewarding investors, GM remains committed to a strong balance sheet and strategic investments—particularly in its electric vehicle (EV) expansion.

• The company anticipates EV operating losses will shrink by $2 billion in 2025.
• GM has projected net income of $11.2 billion to $12.5 billion for the year, aligning with analyst expectations of $11.45 billion (LSEG data).
• Capital spending is estimated to be between $10 billion and $11 billion for 2025.

GM Stock Performance

GM shares have climbed 18% over the past year, mirroring the S&P 500 index’s performance.