Detroit – General Motors Increases its quarterly dividend and is initiating a new 6 -billion dollar -shares in -tecup program, while the company tries to reward investors while sales and profits in the industry are slowed down.
GM announced on Wednesday to increase its quarterly dividend by 25% to 15 cents per share – and corresponds to that of crosstown rival Ford engine. The higher dividend will probably come into force with the next planned payment of the company, which is to be announced in April.
As part of the buyback plan of 6 billion US dollars, 2 billion US dollars will be completed in the second quarter.
“The execution of the GM team is still strong in all three pillars of our capital allocation strategy, which are in the business for profitable growth, retain a strong record of the investment note and return our shareholders,” said GM CEO Mary Mary Barra in a press release.
Barra proposed last month that the company would continue to return capital to shareholders this year. Since 2023, the car manufacturer has announced share buyback programs of $ 16 billion, which led to more than 1 billion outstanding shares in retirement.
Despite such measures and the reporting on strong quarterly results, including regularly exaggerated expectations of Wall Street, the GM shares have decreased by more than 12% this year.
Stock Diagram -iconstock -Igram -Symbol
GM, Ford and Stellantis shares in 2025.
Wall Street analysts have given the sales of the plateauing industry, the regulatory uncertainties in relation to tariffs and lack of potential growth opportunities in stock.
GM said that the total number of shares ultimately bought back the accelerated share buyback of $ 2 billion, is based on the average of the daily volume price of the regular shares of GM during the term of the program. The program is carried out by JPmorgan And Barclays.
Outside of the accelerated program, GM will still have 4.3 billion US dollars of capacities that “for additional opportunistic stock returns as part of its share buyback permissions,” said the company. This includes 300 million US dollars from the last 6 -billion dollar -Kaktraufprogramm from June.
By the end of last year, GM had less than 1 billion stocks – and reached a goal that GM CFO Paul Jacobson announced at the beginning of the year.
“We are confident in our business plan, our balance sheet remains strong and we will be agile if we have to react to changes in public order,” said Jacobson in an explanation. “The buyback permit approved by our Board of Directors continues for our capital allocation directive.”
The instructions from GM 2025 include the net result, which is due to the shareholders in a range of $ 11.2 billion to $ 12.5 billion or $ 11 to 12 per share. Adjusted profits before interest and taxes (EBIT) from $ 13.7 billion to USD $ 15.7 billion or $ 11 to 12 adjusted EPS; and adapted automotive frequency -Cashflow between 11 and 13 billion US dollars.
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