General Motors announced on Tuesday a new plan to buy back $6 billion worth of its own shares. This comes shortly after the company increased its dividend payment due to a positive outlook for the year. GM mentioned that prices for gasoline cars are steady and demand remains strong.
Last November, GM had already planned a $10 billion share buyback after negotiating a costly new labor agreement with the United Auto Workers union. The first part of this plan was completed in the first three months of this year.
GM aims to reduce the total number of its shares to less than 1 billion. Currently, the company’s market value is around $54 billion, according to data from LSEG.
In April, GM raised its dividend by 33%, bringing it to 12 cents per share. Following the announcement of the buyback plan, GM’s stock rose by 1% in early trading before the market opened.
