GM to add $4B to stock buyback program, hike dividend six per cent
GM shares climb on company's optimistic outlook
DETROIT—General Motors says it will add $4 billion to its stock buyback program and raise its quarterly dividend 6 per cent to 38 cents per share.
The dividend increase starts in the first quarter, and the share buybacks will run through 2017.
GM shares climbed 5 per cent in premarket trading Wednesday.
Company executives also announced that GM expects to make an adjusted profit of $5.25 to $5.75 per share this year. That’s up from previous guidance of $5 to $5.50 per share. GM also expects improved adjusted earnings before taxes.
The company also says it will post online its entire inventory of 30,000 company-owned used cars online. The inventory includes cars coming off leases and from rental car companies and company employees.
All will have factory warranties and can be ordered online and purchased through dealerships.
GM shares climbed $1.60, or 5.3 per cent, to $31.90 in premarket trading about an hour before the market open.