DETROIT, Feb 26 (Reuters) - General Motors ( GM ) said

on Wednesday it would increase its quarterly dividend by 25% and

undertake a new $6 billion share buyback program to return

excess cash and increase shareholder value.

The U.S. automaker said it expected to repurchase $2 billion of

shares by the first half of this year, with the remainder to be

bought at any point of the company's choosing.

The quarterly dividend increase from 12 cents to 15 cents a

share will take effect with the company's next planned dividend

in April 2025, it said.

GM had announced a dividend increase and a $10 billion share

buyback program in November 2023.

The automaker said in the fourth quarter it completed that

buyback program and also repurchased 87 million shares in the

open market. At the end of the quarter, GM had an outstanding

share count of 995 million, hitting its goal of reducing the

share count to less than 1 billion shares.

GM in June 2024 approved another $6 billion share buyback, of

which $300 million is outstanding.

"Moving forward, we expect to continue returning excess capital

to our shareholders and further reducing the share count," Chief

Financial Officer Paul Jacobson said on GM's fourth-quarter

earnings call last month.

The automaker is balancing returning value to shareholders with

maintaining a strong balance sheet and investing in the business

as it adds more electric vehicles to its lineup that are not yet

profitable.

GM expects EV operating losses will narrow this year by $2

billion from undisclosed levels.

GM has projected net income of $11.2 billion to $12.5 billion

for 2025. Analysts are projecting net income of $11.45 billion,

as calculated by LSEG.

The company expects its 2025 capital spending to be in the range

of $10 billion to $11 billion.

GM shares have risen about 18% over the last year, roughly in

line with the broad-market S&P 500 index.