Zinger Key Points
- GM increases quarterly dividend by $0.03 per share and announces $6 billion share repurchase program, boosting investor confidence.
- Company plans $10B-$11B in capital spending for 2025, including battery manufacturing investments and $8B for research and development.
- Every week, our Whisper Index uncovers five overlooked stocks with big breakout potential. Get the latest picks today before they gain traction.
General Motors GM announced a 3 cent per share increase in its quarterly dividend and a new $6 billion share repurchase authorization.
The dividend boost, which raises the quarterly payout from 12 cents to 15 cents per share, will take effect with the company’s next planned dividend, expected to be declared in April 2025.
Additionally, General Motors has entered into an accelerated share repurchase program, committing $2 billion of the repurchase authorization.
The ASR program is expected to conclude by the second quarter of 2025.
This move aligns with General Motors capital allocation strategy, which focuses on profitable growth, maintaining a strong balance sheet, and returning value to shareholders.
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Mary Barra, General Motors’ chair and CEO, emphasized the company’s continued strong execution across its diverse portfolio of internal combustion engine vehicles and electric vehicles.
“At the same time, we are investing our capital in a disciplined and consistent way to continue generating strong margins and cash flows,” Barra added.
The company’s capital spending in 2025 is expected to range from $10 billion to $11 billion, including investments in battery cell manufacturing joint ventures.
General Motors also plans to spend over $8 billion on research and product development.
In addition to the ASR program, General Motors has $4.3 billion remaining under its share repurchase authorization for further opportunistic buybacks.
The company is confident in its financial position and remains agile to respond to changes in public policy.
According to Benzinga Pro, GM stock has gained over 17% in the past year. Investors can gain exposure to the stock via First Trust Nasdaq Transportation ETF FTXR.
Price Action: GM shares are trading higher by 7% to $49.98 at last check Wednesday.
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