GM Stock Cash Boost for Shareholders
General Motors (GM) gave good news to its shareholders. They just got more cash after the Q4 results. GM announced on Wednesday that it would raise its quarterly dividend by $0.03 to $0.15 per share. This is the first dividend increase since 2023.
GM Stock Share Buyback Program
GM also said it will start a new $6 billion share repurchase plan. Out of this, $2 billion will be used soon in a new accelerated share repurchase (ASR) program. Because of this, GM stock was up 3% in pre-market trading.
GM Stock Comments from the CEO
Mary Barra, GM’s CEO and chair, said,
“The GM team’s execution is strong. We reinvest in the business, keep a strong balance sheet, and return capital to our shareholders.”
When GM shared its fourth-quarter earnings last month, GM stock went down because investors were disappointed that there was no new share purchase plan at that time.
GM Stock Past and Future Plans
Last year, GM had a share buyback plan to repurchase up to $6 billion of its shares. This was added to a $10 billion accelerated share repurchase program that started at the end of last year. That plan also included a 33% dividend increase starting in January.
- Nike Stock Analysis 2025 A Fresh Start with Big Hopes
- Fidelity Crypto reddit 2025 A Simple and Safe Way to Explore Digital Money
On an analyst call last month, GM CFO Paul Jacobson said the company would find a careful way to grow these plans. He said, “We feel confident in our business plan, our balance sheet is strong, and we will be quick to respond to any public policy changes. The new repurchase plan shows our commitment to our strategy.”
GM also said that for 2025, it will spend between $10 billion and $11 billion. This money will go to its battery manufacturing projects and other important investments. Research and product development spending is expected to be more than $8 billion.
Last month, GM predicted its 2025 profit would be between $13.7 billion and $15.7 billion. It expects earnings per share to be between $11.00 and $12.00. The company did not include any effects from tariffs on imported vehicles or parts. Earlier this month, Mary Barra said GM can cut up to 50% of the tariff effects by moving some vehicle and parts production to other places.