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Shares of General Motors are rising Wednesday after the automaker announced a new $6 billion stock buyback plan and raised its quarterly dividend.
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The automaker said it would lift its dividend to $0.15 per share from $0.12.
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GM topped estimates in its latest quarterly report last month, but concerns over tariffs and other possible policy shifts have driven shares lower since.
Shares of General Motors (GM) surged Wednesday after the automaker announced a new $6 billion stock buyback plan and raised its quarterly dividend.
The parent of Chevrolet and Cadillac said the buyback has no expiration date but that it aims to complete the first $2 billion in repurchases by the end of the second quarter.
The automaker also said it has approved a new $0.15 per share dividend, up from $0.12, starting with its next quarterly payout set to be announced in April.
“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,” CEO Mary Barra said.
GM topped estimates in its latest quarterly report last month, but shares have moved lower in the weeks since amid concerns that tariffs and shifting policies around electric vehicles under the Trump administration could impact the auto industry. Deutsche Bank analysts cited GM’s “aggressive share buyback trajectory” as one of their reasons for upgrading the stock last month.
Shares of the automaker rose 6% as markets opened Wednesday and have gained nearly 25% over the last 12 months.
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