General American Investors Company Announces Actions Taken by the Board of Directors

Rhea-AI Summary

The Board of Directors of General American Investors Company (NYSE symbol – GAM) has declared a quarterly dividend of $0.371875 per share on its 5.95% cumulative preferred stock, Series B, payable on September 24, 2021, to shareholders of record as of September 7, 2021. Additionally, the company authorized a repurchase of 2 million outstanding shares of common stock when trading at a discount of at least 8% from the net asset value, continuing a program initiated in 1995. As of June 30, 2021, General American Investors has total net assets of approximately $1.2 million.

Positive

• Declaring a quarterly dividend of $0.371875 per share demonstrates financial stability and commitment to preferred shareholders.
• Authorization to repurchase 2 million shares may enhance shareholder value by reducing outstanding shares.

Negative

• The company's total net assets of $1.2 million may indicate limited growth potential compared to larger competitors.
• The repurchase program, while potentially beneficial, relies on shares trading at a significant discount, raising concerns about market perception.

The Board of Directors of General American Investors Company, Inc. (NYSE symbol – GAM), a closed-end investment company, declared on its 5.95% cumulative preferred stock, series B, a dividend and distribution of $0.371875 per share payable in cash on September 24, 2021 to holders of record on September 7, 2021. This quarterly dividend and distribution represents a payment for the accrual period from June 24, 2021 through September 23, 2021. Preferred shareholders will be informed in early 2022 of the taxable portions of the distribution.

The Board of Directors also authorized the repurchase of an additional 2,000,000 outstanding shares of common stock when the shares are trading at a discount from the underlying net asset value by at least 8%. This continues a repurchase program which began in March 1995. Through June 30, 2021, the Company has repurchased 30.6 million shares of common stock for $924 million at an average discount of 13.9%.

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. The Company has total net assets of approximately $1.2 million applicable to its 24.2 million shares of common stock outstanding as of June 30, 2021. The aggregate liquidation value of the Company’s preferred stock is $190 million (NYSE symbol – GAM Pr B).

View source version on businesswire.com: https://www.businesswire.com/news/home/20210728006037/en/

FAQ

What is the recent dividend declared by GAM?

General American Investors Company declared a dividend of $0.371875 per share on its 5.95% cumulative preferred stock, Series B.

When will the dividend be paid to shareholders?

The dividend will be payable on September 24, 2021, to shareholders of record on September 7, 2021.

How many shares of common stock will GAM repurchase?

GAM has authorized the repurchase of an additional 2 million shares of common stock.

What is the condition for GAM's share repurchase program?

The shares must be trading at a discount of at least 8% from the underlying net asset value.

How much has GAM repurchased in total since 1995?

Since March 1995, GAM has repurchased a total of 30.6 million shares for $924 million.