General Motors has unveiled a new $6 billion share buyback plan, coming just over a month after the automaker raised its dividend on the back of an optimistic annual forecast. This move underscores the company’s confidence in its financial stability and the steady demand for gasoline-engine vehicles.
In January, GM increased its dividend by 33%, raising it to 12 cents per share. This decision reflects the company’s robust financial health and its commitment to delivering value to shareholders. The announcement of the new share buyback plan follows this dividend hike, further reinforcing GM’s positive outlook.
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Back in November, GM had outlined a $10 billion stock buyback program. This plan was introduced shortly after GM finalized a costly new labor agreement with the United Auto Workers (UAW) union. The company completed the first phase of this buyback in the first quarter and is on track to reduce its outstanding share count to below 1 billion.
As of the latest close, GM’s market capitalization stood at $54 billion, according to LSEG data. The announcement of the new share buyback plan contributed to a 1% rise in GM’s shares during premarket trading, indicating positive investor sentiment.
General Motors continues to demonstrate financial resilience and confidence in its future prospects. The new $6 billion share buyback plan, coupled with the recent dividend increase, highlights GM’s strategic efforts to enhance shareholder value while navigating the dynamic automotive market.
