Automakers operate in a capital-intensive industry with fierce competition. While Ford Motor Company (F -1.53%) and General Motors (GM -3.50%) have had their stocks beaten down over uncertainty about the potential effects of threatened and imposed tariffs both here and abroad, they are also spending billions to develop electric vehicles and are struggling in overseas markets like China.

Despite the multiple headwinds, there are still reasons to own shares of either of these Detroit-based automakers. One big reason is that both do one thing very well: Return value to shareholders through dividends or buybacks.

GM has a firm commitment to boosting the stock price

What's a company to do when its share prices remain heavily undervalued? The answer is simple for folks at General Motors: Buy back shares. GM's management has made a firm commitment to buying back shares, which currently trade at a paltry price-to-earnings ratio of 7 times.

General Motors recently showed strength in the face of potentially devastating tariffs, which could threaten billions on the bottom line. GM announced in February it would increase its quarterly dividend by 25%, but more importantly, start a new $6 billion share buyback program. GM went as far as to say $2 billion would be repurchased quickly during the first half of this year, with the remainder to be bought at the company's choosing.

What investors need to understand is how much of a trend this is. General Motors had previously completed a $10 billion repurchase program that began a couple of years prior. In fact, you can see just how significant the impact has been on its shares outstanding, and how the company's stock price reacted.

Data by YCharts.

According to GM CFO Paul Jacobson, investors can expect this trend to continue. "Moving forward, we expect to continue returning excess capital to our shareholders and further reducing the share count," he said. 

Potential tariff impacts or a recession could slow General Motors down, but it's clear the company will continue to buy back shares, and it's worked out well for investors recently.

Ford offers investors a lucrative dividend yield

Ford has chosen to return value to shareholders using the other side of the coin, a lucrative dividend yield. The company recently declared its $0.15 per share quarterly dividend, and has focused on dishing out excess capital in the form of supplemental dividends, which it has done multiple times in recent years -- including this year, paying out a supplemental dividend of $0.15 per share.

Ford's dividend, thanks in part to a beaten-down stock price, sits at a lofty yield of 7.4%. What investors should pay attention to here is that Ford's long-term focus on its dividend has meant that much of the return for owning the stock is tied up in its dividend. And yet, the dividend payout ratio is just a bit under 41%, meaning the company can well afford to continue paying it and continue raising it year after year.

Data by YCharts.

While potential tariff impacts could adversely affect Ford's business and force the company to exercise added caution about any dividend increases or hold back on issuing any supplemental dividends, the company has shown it is committed long-term to its dividend. One reason for its commitment is due to the Ford family owning enough shares to control the board and ensure the dividend remains a priority. What's good for the Ford dividend is good for the Ford family, as well as investors owning shares of Ford specifically for its dividend.

What it all means for investors

Right now is a difficult time to be buying shares of automakers' stock. The threat of tariffs wiping out billions in profits and causing headaches across the supply chain is very real. The possibility of a recession makes matters even worse for automakers that struggle during economic downturns. The only reason to own shares of General Motors or Ford right now is because of their ability to return value to shareholders, be it through a dividend or share buybacks. That could slow down during downturns, but it won't change long term, and investors can take that to the bank.