GM Stock Rallies on Dividend Increase, Buyback Plan
General Motors stock is higher Wednesday after the car maker announced a dividend increase and a new share repurchase program. Here's what you need to know.
You are now subscribed
Your newsletter sign-up was successful
Want to add more newsletters?
Delivered daily
Kiplinger Today
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more delivered daily. Smart money moves start here.
Sent five days a week
Kiplinger A Step Ahead
Get practical help to make better financial decisions in your everyday life, from spending to savings on top deals.
Delivered daily
Kiplinger Closing Bell
Get today's biggest financial and investing headlines delivered to your inbox every day the U.S. stock market is open.
Sent twice a week
Kiplinger Adviser Intel
Financial pros across the country share best practices and fresh tactics to preserve and grow your wealth.
Delivered weekly
Kiplinger Tax Tips
Trim your federal and state tax bills with practical tax-planning and tax-cutting strategies.
Sent twice a week
Kiplinger Retirement Tips
Your twice-a-week guide to planning and enjoying a financially secure and richly rewarding retirement
Sent bimonthly.
Kiplinger Adviser Angle
Insights for advisers, wealth managers and other financial professionals.
Sent twice a week
Kiplinger Investing Weekly
Your twice-a-week roundup of promising stocks, funds, companies and industries you should consider, ones you should avoid, and why.
Sent weekly for six weeks
Kiplinger Invest for Retirement
Your step-by-step six-part series on how to invest for retirement, from devising a successful strategy to exactly which investments to choose.
General Motors (GM) stock is rising Wednesday after the auto company announced a 25% increase to its quarterly dividend and introduced a new $6 billion share repurchase program.
"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," said CEO Mary Barra in a statement.
Barra said GM is growing "thanks to our broad, deep, and compelling portfolio of ICE vehicles and EVs" and is "investing our capital in a disciplined and consistent way to continue generating strong margins and cash flows."
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
GM's new quarterly dividend rate is 15 cents per share, up from 12 cents per share. The increase will take effect with the next planned dividend declaration in April.
"We feel confident in our business plan, our balance sheet remains strong, and we will be agile if we need to respond to changes in public policy," said Paul Jacobson, executive vice president and CFO.
The CFO explained that the "repurchase authorization our board approved continues a commitment to our capital allocation policy."
The $6 billion repurchase authorization does not have an expiration date. GM also said it entered into an accelerated share repurchase (ASR) program to repurchase $2 billion of the company's common stock. The ASR is expected to conclude in the second quarter.
Stock buybacks are another way for corporations to boost value for shareholders. As Kiplinger contributor Mark Hake explains in his piece on "What Is a Stock Buyback," a company "that buys back its shares will produce a higher stock price because as its shares count falls, it forces the price higher."
Hake goes on to explain "that effect produces more value for shareholders, as they pay no taxes on this unrealized gain (until they sell shares)."
Is General Motors stock a buy, sell or hold?
GM generated a total return of 49.8% in 2024, nearly doubling the S&P 500's 25% gain. It's down more than 12% so far in 2025 compared to the index's 1.4% increase. But Wall Street remains bullish on the consumer discretionary stock.
According to S&P Global Market Intelligence, the consensus analyst target price for GM stock is $59.96, representing implied upside of over 20% to current levels. And the consensus recommendation is Buy.
Financial services firm Wedbush has an Outperform rating (equivalent to a Buy) and $60 price target on GM stock.
"We had the opportunity to meet with GM at their headquarters in Detroit and came away with an increased confidence that Barra & Co. are very prepared for all scenarios in the tariff saga," Wedbush analyst Daniel Ives said in a February 13 note.
Ives noted that Wall Street's "initial negative knee-jerk reaction to GM's guidance a few weeks ago 'not including the tariff impact' was the wrong move."
According to Ives, "Behind the scenes the GM team is very prepared for all types of scenarios with Canada/Mexico/China tariffs."
Related Content
-
5 Vince Lombardi Quotes Retirees Should Live ByThe iconic football coach's philosophy can help retirees win at the game of life.
-
The $200,000 Olympic 'Pension' is a Retirement Game-Changer for Team USAThe donation by financier Ross Stevens is meant to be a "retirement program" for Team USA Olympic and Paralympic athletes.
-
10 Cheapest Places to Live in ColoradoProperty Tax Looking for a cozy cabin near the slopes? These Colorado counties combine reasonable house prices with the state's lowest property tax bills.
-
Don't Bury Your Kids in Taxes: How to Position Your Investments to Help Create More Wealth for ThemTo minimize your heirs' tax burden, focus on aligning your investment account types and assets with your estate plan, and pay attention to the impact of RMDs.
-
Are You 'Too Old' to Benefit From an Annuity?Probably not, even if you're in your 70s or 80s, but it depends on your circumstances and the kind of annuity you're considering.
-
In Your 50s and Seeing Retirement in the Distance? What You Do Now Can Make a Significant ImpactThis is the perfect time to assess whether your retirement planning is on track and determine what steps you need to take if it's not.
-
Your Retirement Isn't Set in Stone, But It Can Be a Work of ArtSetting and forgetting your retirement plan will make it hard to cope with life's challenges. Instead, consider redrawing and refining your plan as you go.
-
The Bear Market Protocol: 3 Strategies to Consider in a Down MarketThe Bear Market Protocol: 3 Strategies for a Down Market From buying the dip to strategic Roth conversions, there are several ways to use a bear market to your advantage — once you get over the fear factor.
-
Dow Adds 1,206 Points to Top 50,000: Stock Market TodayThe S&P 500 and Nasdaq also had strong finishes to a volatile week, with beaten-down tech stocks outperforming.
-
The Best Precious Metals ETFs to Buy in 2026Precious metals ETFs provide a hedge against monetary debasement and exposure to industrial-related tailwinds from emerging markets.
-
For the 2% Club, the Guardrails Approach and the 4% Rule Do Not Work: Here's What Works InsteadFor retirees with a pension, traditional withdrawal rules could be too restrictive. You need a tailored income plan that is much more flexible and realistic.
