GM Boosts Shareholder Payouts with $5B Buyback and Dividend Hike

General Motors Co. (GM) has announced a significant boost to its investor payouts, including a new share buyback program and an increase in its quarterly dividend. The move comes as the automaker continues to navigate the challenges of the global automotive industry and seeks to reward its shareholders for their support.

The new share buyback program, valued at up to $5 billion, will allow GM to repurchase its own shares, reducing the number of outstanding shares and potentially increasing the value of each share. This strategy is designed to enhance shareholder value by reducing the supply of GM shares in the market. The buyback program is expected to be completed by the end of 2025.

In addition to the new buyback program, GM has also announced a 10% increase in its quarterly dividend, from $0.15 per share to $0.165 per share. The increased dividend will be payable on June 10, 2024, to shareholders of record as of May 20, 2024. This move demonstrates GM's commitment to returning capital to its shareholders and reflects the company's confidence in its financial performance.

Mary Barra, GM's chairman and chief executive officer, expressed her enthusiasm for the company's future prospects. "We are confident in our ability to generate strong cash flows and create value for our shareholders," Barra said. "These actions demonstrate our commitment to returning capital to our shareholders and investing in our business for long-term growth."

GM's decision to boost investor payouts comes as the company continues to invest in its electric vehicle (EV) portfolio and expand its global presence. The automaker has set ambitious targets for EV production and sales, aiming to launch 30 new global electric vehicles by 2025. GM's commitment to the EV market is a strategic move to capitalize on the growing demand for sustainable transportation options.

The company's recent financial performance has been strong, with GM reporting a net income of $2.25 billion in the first quarter of 2024, a significant improvement over the same period last year. GM's revenue also increased by 14% year-over-year, driven by strong demand for its vehicles and improved market conditions.

As GM continues to navigate the challenges of the global automotive industry, the company's focus on returning capital to shareholders and investing in its business