GM board approves a new $6 billion stock-buyback program

By Ciara Linnane

Car maker expects to return $1.7 billion to shareholders in the first half via buybacks and dividends

General Motors Co. said Tuesday its board has approved a new $6 billion stock-buyback program, sending its stock up 1.6%.

The carmaker (GM) said the new authorization will enable it to continue buying its stock once the existing program is completed.

The company last November announced a $10 billion accelerated stock-repurchase program, while continuing to have $1.4 billion in capacity under a prior agreement.

In the first quarter, GM purchased $300 million of its stock and expects to exhaust the remaining $1.1 billion before the end of the second quarter.

In another shareholder-friendly move, the company raised its quarterly dividend in the first quarter to 12 cents a share from 9 cents previously.

The company is now expecting to return a total of $1.7 billion to shareholders in the first half of 2024, after returning $11.6 billion in 2023, up from $2.8 billion in 2022.

That's comprised of $1.4 billion in stock buybacks and $300 million in dividends.

The company will report second-quarter earnings on July 23.

The stock was has gained 34% in the year to date, while the S&P 500 has gained 12%.

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-Ciara Linnane

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06-11-24 1045ET

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