GM Raises Quarterly Dividend, Initiates $6 Billion Stock Buyback
General Motors has announced a 25% increase in its quarterly dividend to 15 cents per share and a new $6 billion share repurchase program aimed at rewarding investors amidst declining industry sales. The automaker's CEO Mary Barra highlighted the company's commitment to a strong capital allocation strategy, which includes investing in growth while returning capital to shareholders. Despite strong quarterly results and a series of buybacks, GM's stock has seen a decline of over 12% this year, attributed to industry challenges and regulatory uncertainties.
- This move by GM reflects a broader trend in the automotive industry where companies are trying to balance shareholder returns with the pressures of an evolving market landscape.
- What strategies might GM employ to regain investor confidence and reverse the downward trend in its stock price?