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General Motors (NYSE: GM) said today that its Board of Directors has approved a $0.03 per share increase in the quarterly common stock dividend rate beginning with the next planned dividend, as well as a new $6 billion share repurchase authorization.* The company has entered into a hastened share repurchase (ASR) program to execute $2 billion of the share repurchase authorization.
“The GM team’s execution continues to be strong across all three pillars of our capital allocation strategy, which are to reinvest in the business for profitable growth, maintain a strong investment grade balance sheet, and return capital to our shareholders,” said Mary Barra, chair and CEO.
“We are growing our business thanks to our broad, deep, and compelling portfolio of ICE vehicles and EVs. At the same time, we are investing our capital in a disciplined and consistent way to continue generating strong margins and cash flows,” said Barra.
GM said in January that capital spending in 2025 is expected to be in the range of $10 billion – $11 billion, inclusive of investments in the company’s battery cell manufacturing joint ventures. Spending on research and product development is expected to be more than $8 billion. (Read AutoInformed.com on: GM Posts Record 2024 EBIT, EPS and Cash Flow)
The new quarterly dividend rate of $0.15 per share is a $0.03 per share increase from the previous quarterly dividend of $0.12 per share. It will take effect with the company’s next planned dividend, expected to be declared in April 2025 when Q1 financial results will be posted.
*The share repurchase program, with no expiration date, will be executed in accordance with applicable securities laws and regulations and may be suspended or discontinued at any time at the company’s discretion. Through the ASR program, GM will advance an aggregate of $2 billion to the executing banks to receive and retire GM common stock. The total number of shares ultimately repurchased under the ASR program will be determined upon final settlement and will be based on the average of the daily volume-weighted average prices of GM’s common stock during the term of the program. The ASR program is expected to conclude in the second quarter of 2025. The ASR program will be executed by Barclays and J.P. Morgan.
Outside of the ASR program, GM will have $4.3 billion of capacity remaining under its share repurchase authorizations for additional, opportunistic share repurchases. In 2024, GM’s weighted average common shares outstanding was 1.055 billion, and as of 31 Dec. 2024, the company had less than 1 billion total shares outstanding.
“We feel confident in our business plan, our balance sheet remains strong, and we will be agile if we need to respond to changes in public policy,” said Paul Jacobson, executive vice president and CFO. “The repurchase authorization our board approved continues a commitment to our capital allocation policy.”
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn.
He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe.
Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap.
AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks.
Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.
GM Board OK’s New Share Repurchases, Higher Dividends
A solid foundation. Click for more.
General Motors (NYSE: GM) said today that its Board of Directors has approved a $0.03 per share increase in the quarterly common stock dividend rate beginning with the next planned dividend, as well as a new $6 billion share repurchase authorization.* The company has entered into a hastened share repurchase (ASR) program to execute $2 billion of the share repurchase authorization.
“The GM team’s execution continues to be strong across all three pillars of our capital allocation strategy, which are to reinvest in the business for profitable growth, maintain a strong investment grade balance sheet, and return capital to our shareholders,” said Mary Barra, chair and CEO.
“We are growing our business thanks to our broad, deep, and compelling portfolio of ICE vehicles and EVs. At the same time, we are investing our capital in a disciplined and consistent way to continue generating strong margins and cash flows,” said Barra.
GM said in January that capital spending in 2025 is expected to be in the range of $10 billion – $11 billion, inclusive of investments in the company’s battery cell manufacturing joint ventures. Spending on research and product development is expected to be more than $8 billion. (Read AutoInformed.com on: GM Posts Record 2024 EBIT, EPS and Cash Flow)
The new quarterly dividend rate of $0.15 per share is a $0.03 per share increase from the previous quarterly dividend of $0.12 per share. It will take effect with the company’s next planned dividend, expected to be declared in April 2025 when Q1 financial results will be posted.
*The share repurchase program, with no expiration date, will be executed in accordance with applicable securities laws and regulations and may be suspended or discontinued at any time at the company’s discretion. Through the ASR program, GM will advance an aggregate of $2 billion to the executing banks to receive and retire GM common stock. The total number of shares ultimately repurchased under the ASR program will be determined upon final settlement and will be based on the average of the daily volume-weighted average prices of GM’s common stock during the term of the program. The ASR program is expected to conclude in the second quarter of 2025. The ASR program will be executed by Barclays and J.P. Morgan.
Outside of the ASR program, GM will have $4.3 billion of capacity remaining under its share repurchase authorizations for additional, opportunistic share repurchases. In 2024, GM’s weighted average common shares outstanding was 1.055 billion, and as of 31 Dec. 2024, the company had less than 1 billion total shares outstanding.
“We feel confident in our business plan, our balance sheet remains strong, and we will be agile if we need to respond to changes in public policy,” said Paul Jacobson, executive vice president and CFO. “The repurchase authorization our board approved continues a commitment to our capital allocation policy.”
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn. He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe. Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap. AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks. Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.