General American Investors Announces Issue Price for the 2020 Year-End Dividend and Distribution Payable on December 30, 2020

Rhea-AI Summary

General American Investors Company, Inc. (NYSE: GAM) announced its 2020 year-end dividend of $2.50 per share, with payments made on December 30, 2020. Shareholders who opted for stock instead of cash will receive shares priced at $36.825 each, reflecting the average trading price on December 18, 2020. This price is below the net asset value of $43.54. The distribution includes $2.27 per share from net long-term capital gains and a dividend of $0.23 from undistributed net investment income.

Positive

• Dividend of $2.50 per share demonstrates confidence in long-term capital appreciation.
• Distribution includes $2.27 from capital gains, indicating successful investment strategies.

Negative

• Share issuance price of $36.825 is below the net asset value of $43.54, potentially signaling overvaluation concerns.

General American Investors Company, Inc. (NYSE: GAM), a closed-end investment company, announced that the price at which shares of its common stock will be issued to stockholders who elected to receive additional shares in payment of the 2020 year-end dividend and distribution on its common stock will be $36.825 per share. The issue price represents the average between the high and the low prices on the New York Stock Exchange on December 18, 2020, which was below the net asset value of $43.54 per share on that date. The dividend and distribution is payable on December 30, 2020. As announced on November 4, the dividend and distribution amounts to $2.50 per share in the aggregate and is estimated to consist of:

• A distribution of $2.27 per share from net long-term capital gains on securities sold.
• A dividend of $0.23 per share from estimated undistributed net investment income for the full year 2020.

The final determination as to the taxability of the above amounts will be reported to you in January 2021 via Form 1099-DIV.

General American Investors was founded in 1927, has been publicly traded since its inception, and has been listed on the NYSE since 1930. The objective of the Company is long-term capital appreciation through investment in companies with above average growth potential. As of November 30, 2020, the Company had net assets of approximately $1.0 billion applicable to its 24.2 million shares of common stock outstanding. Its preferred shares (symbol GAM Pr B) are also listed on the NYSE and their aggregate liquidation value is $190.1 million.

View source version on businesswire.com: https://www.businesswire.com/news/home/20201218005706/en/

FAQ

What is the dividend amount for GAM in 2020?

The dividend amount for GAM in 2020 is $2.50 per share.

When is the GAM dividend payment date?

The dividend payment date for GAM is December 30, 2020.

What is the price of shares issued for the dividend?

The price of shares issued for the dividend is $36.825 per share.

What does the dividend distribution consist of?

The dividend distribution consists of $2.27 per share from net long-term capital gains and $0.23 from undistributed net investment income.

How does the dividend impact GAM's shareholders?

The dividend reflects confidence in the company's investment strategy, providing income to shareholders.