LANSING, Mich. (Michigan News Source) — General Motors is boosting shareholder payouts, approving a stock dividend increase from 12 cents to 15 cents per share, the company announced on February 26 in a filing with the U.S. Securities and Exchange Commission. With federal policy changes on the horizon, the increase comes as GM navigates potential industry-wide impacts.

“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,” GM Chief Financial Officer Paul Jacobson said in a statement.

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The dividend increase is the first since late 2023, according to the Detroit Free Press. The company has allocated between $10 billion and $11 billion in investments for the year, with a focus on manufacturing, battery production, and expanding its electric vehicle lineup.

In addition to the dividend increase, GM authorized a $6 billion stock buyback plan, with $2 billion earmarked for accelerated repurchases in the first half of 2025. Over time, GM has reduced its outstanding shares from more than 1.3 billion to under 1 billion through buybacks.

The automaker is also sharing profits with employees. Workers represented by the United Auto Workers (UAW) are set to receive up to $14,500 in pretax bonuses for 2024—an increase from last year’s $12,250 payout.

CEO Mary Barra framed the dividend hike and buybacks as part of a larger effort to balance investment and shareholder value. “We are growing our business thanks to our broad, deep, and compelling portfolio of ICE vehicles and EVs,” Barra said in a statement. “At the same time, we are investing our capital in a disciplined and consistent way to continue generating strong margins and cash flows.”

The new dividend rate takes effect with the next planned payout in April 2025.