General Motors (GM) stock surged 6.1% in intraday trading on Wednesday, February 26, 2025, following the company's announcement of a new $6 billion share repurchase program and a 25% increase in its quarterly dividend.
The automaker's Board of Directors approved the new share buyback plan, which includes a $2 billion accelerated share repurchase (ASR) program to be executed in the second quarter of 2025. Additionally, GM raised its quarterly dividend from $0.12 to $0.15 per share, effective with the next planned dividend in April 2025.
GM's CEO Mary Barra cited the company's strong execution across its capital allocation strategy as the driving force behind these moves, indicating confidence in the company's business plan and ability to navigate potential policy changes. The share repurchase and dividend hike are aimed at returning excess capital to shareholders while maintaining a strong investment-grade balance sheet.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.