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<p class="has-drop-cap">General Motors (NYSE: GM) spiked more than 9% in the Wednesday premarket after the company <a aria-label="unveiled a string of measures (opens in a new tab)" href="https://www.cnbc.com/2023/11/29/gm-buyback-dividend-guidance.html" target="_blank" rel="noopener noreferrer nofollow" class="deco-link">unveiled a string of measures</a> to restore investors’ trust. Most notably, the company announced a $10 billion stock buyback plan, a 33% quarterly dividend boost for 2024, and an improved 2023 guidance.</p>
<h3 id="gm-revises-2023-guidance">GM Revises 2023 Guidance</h3>
<p>In a move aimed at regaining investors’ attention, General Motors unveiled a series of initiatives to offset the negative effects of a turbulent year marked by labor strikes and business plan setbacks. The carmaker’s shares surged over 9% ahead of Wednesday’s market open.&nbsp;</p>
<p>Notably, the car manufacturer intends to boost its quarterly dividend in 2024 by 33% to 12 cents per share and launch an accelerated $10 billion stock buyback program.&nbsp;</p>
<p>Furthermore, the company plans to reinstate its 2023 guidance to include an approximate $1.1 billion EBIT-adjusted blow caused by six weeks of <a href="https://tokenist.com/could-tesla-benefit-from-the-uaws-strike/" rel="noopener noreferrer nofollow" class="deco-link">labor strikes led by the United Auto Workers</a> (UAW) union. The UAW initiated the strike of the Detroit Three car manufacturers in September, Ford, GM, and Stellantis, with the former r<a href="https://tokenist.com/ford-gains-in-premarket-after-deal-negotiated-to-end-uaw-strike/" rel="noopener noreferrer nofollow" class="deco-link">eaching an agreement with the group</a> last month.&nbsp;&nbsp;</p>
<p>GM’s refined 2023 guidance encompassed several adjustments. The automaker expects its net income to land between $9.1 billion and $9.7 billion in fiscal 2023 and projected an adjusted EBIT of $11.7 billion to $12.7 billion. Adjusted earnings per share are anticipated to be $7.20 to $7.70, while adjusted automotive free cash flow is estimated to fall between $10.5 billion and $11.5 billion.&nbsp;</p>
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<h3 id="gm-underperforming-sp-500-in-2023-amid-uaw-auto-market-headwinds">GM Underperforming S&amp;P 500 in 2023 Amid UAW, Auto Market Headwinds</h3>
<p>The latest batch of investor-oriented initiatives marks a much-needed motion of confidence for the automotive giant in a challenging overall year.</p>
<p>After reporting its Q3 earnings in October, the company pulled its guidance, citing uncertainty attributable to UAW negotiations and labor strikes. The company <a aria-label="struck a tentative agreement (opens in a new tab)" href="https://www.reuters.com/business/autos-transportation/gm-reaches-tentative-deal-with-uaw-source-says-2023-10-30/" target="_blank" rel="noopener noreferrer nofollow" class="deco-link">struck a tentative agreement</a> with the union on October 30, ending the work stoppages.</p>
<p>Apart from this, GM also grappled with broader economic challenges and headwinds in the automotive industry as it struggled to normalize away from expensive vehicles and record profits.&nbsp;</p>
<p>These issues and investors’ concerns have been reflected in GM’s stock price, which fell more than 14.5% since the start of the year. This marks a significant underperformance compared to the broader S&amp;P 500, which <a href="https://tokenist.com/after-novembers-rally-the-spx-is-only-2-below-its-2023-intraday-high/" rel="noopener noreferrer nofollow" class="deco-link">gained over 19%</a>, primarily thanks to the ongoing AI boom.&nbsp;</p> <iframe src="https://tokenist.substack.com/embed" width="100%" height="320" style="border:1px solid #EEE; background:white;" frameborder="0" scrolling="no"></iframe>
<p><em><strong>With 2023 coming to an end soon, do you expect GM to have a better 2024 following the latest series of investor-focused initiatives? Let us know in the comments below.&nbsp;</strong></em></p>
<p>The post <a rel="noopener noreferrer nofollow" href="https://tokenist.com/gm-announces-10b-buyback-will-up-dividend-by-33-next-year/">GM Announces $10B Buyback, Will Up Dividend By 33% Next Year</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://tokenist.com">Tokenist</a>.</p>

GM Announces $10B Buyback, Will Up Dividend By 33% Next Year

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