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Additionally, GM says it is launching an accelerated share repurchase program or ASR, with $10 billion
earmarked for stock buybacks over the course of the program.
The General’s common stock shares currently pay a 9-cent per share dividend each quarter to shareholders
of record. Following the upcoming dividend boost, each share will pay a 12-cent dividend, a three-cent increase
over the previous amount.
Furthermore, the share repurchase program will see the banks tasked with executing the plan buy back $6.8 billion
worth of common stock “immediately.”
For those who are unaware, the repurchased stock will be “retired” or
eliminated from the pool of available shares, a process reducing the number of outstanding shares and thus
increasing those shares’ value.
Bank of America, Goldman Sachs, Citibank and Barclays will carry out the share repurchase program.
The program is expected to be complete sometime in the fourth quarter (Q4) of calendar year 2024.
About 1.37 billion shares of common GM stock are outstanding as of the buyback’s start.
The General says it has an additional $1.4 billion remaining from previous allocations it made for stock
repurchases. This money, it says, will be used “for additional, opportunistic share repurchases.”
The automaker canceled a revolving credit facility of $6 billion and will replace it with a $3 billion committed credit facility.
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