U.S. automaker General Motors (GM) has announced that it is raising its quarterly dividend payment to stockholders by 33% to $0.12 U.S. per share starting in 2024.
The Detroit-based automotive company also said that it will buyback $10 billion U.S. of its own stock over the next year and reinstated its 2023 earnings guidance.
The moves are aimed at helping GM regain investors’ confidence following a costly labour strike in the U.S. by the United Auto Workers (UAW) union that resulted in an expensive new collective agreement.
The reinstated guidance includes net income attributable to stockholders of $9.1 billion U.S. to $9.7 billion U.S., and earnings per share of $7.20 U.S. to $7.70 U.S., including the stock buyback.
General Motors had pulled its guidance when it reported its third-quarter financial results on Oct. 24, citing volatility caused by the UAW strike.
The company has said that the strike had cost it roughly $800 million U.S. in lost vehicle production, including $200 million U.S. during this year’s third quarter.
The stock of General Motors rose 7% in pre-market trading on news of the dividend increase and stock buyback.
Prior to today (Nov. 29), the company’s share price had declined 15% on the year to trade at $28.89 U.S. per share.
