GM Dividend Hike, $6B Stock Buyback Show ‘Heartbeat of America’ Strategy Paying Off

General Motors, the company whose president famously declared in 1953 that ‘what is good for the country is good for GM,’ is now prioritizing one of Wall Street’s favorite American traditions: stock buybacks.

The Detroit automaker said Tuesday that its board authorized a $6 billion share repurchase program in addition to raising its quarterly dividend by 20% to 18 cents per share. Since November 2023, GM has bought back $23 billion worth of its own shares. Investors seemed to approve, sending shares climbing around 8% Tuesday morning after the company reported earnings. 

American Autos  

Once the largest carmaker in the world and an archetypal US multinational, GM has retreated from the global spotlight, selling its European Opel and Vauxhall brands in 2017 and restructuring its business in China after losing ground to local competitors. In some ways, staying close to home has paid off: In 2025, the company achieved its highest US market share since 2015, driven by “low inventory, low incentives, and strong pricing,” CEO Mary Barra said in a letter to shareholders. This was the company’s fourth consecutive year of US market share growth.

Overall, General Motors reported a $3.3 billion loss for the quarter, weighed down significantly by a previously disclosed writeoff of about $7.2 billion tied to the company’s struggling electric vehicle business. Last year, Congress ended a $7,500 tax credit for new EV buyers, dampening demand for those vehicles. 

But the earnings report brought good news for the automaker, too: 

• Excluding the writeoff and other items, GM reported profit of $2.51 per share in the fourth quarter, beating analysts’ expectations of $2.28. 
• The company, which once advertised its Chevrolet brand as the ‘Heartbeat of America,’ expects adjusted earnings of $13 billion to $15 billion this year, higher than 2025’s $12.7 billion, despite tariffs and the cost of reshoring production.

Risky Business: GM faces another speed bump from a recent deal that will allow thousands of Chinese EVs into Canada. Barra called the move a risk to North America’s auto manufacturing, saying that it goes against protecting jobs and national security on the continent, The Wall Street Journal reported. “I can’t explain why the decision was made in Canada,” Barra said during a meeting with employees on Tuesday. “It becomes a very slippery slope.”