General Motors (GM) shares rallied around 5% in pre-market trading on Wednesday, February 26, 2025, driven by the company's announcement of a new $6 billion share repurchase program and a 25% increase in its quarterly dividend.

The automaker revealed that its Board of Directors approved a $0.03 per share increase in the quarterly common stock dividend rate, bringing it to $0.15 per share starting with the next planned dividend expected in April 2025. Additionally, GM authorized a new $6 billion share repurchase program, with an accelerated share repurchase (ASR) of $2 billion set to be executed in the second quarter of 2025.

According to GM's Chair and CEO Mary Barra, these moves reflect the company's strong execution across its three capital allocation pillars: reinvesting in the business for profitable growth, maintaining a strong investment-grade balance sheet, and returning capital to shareholders. Barra cited GM's broad portfolio of internal combustion engine vehicles and electric vehicles (EVs) as driving the company's growth, while expressing confidence in its business plan despite potential policy changes.