General American Investors Company Declares Year-End Dividends and Distributions on Common and Preferred Stock

Rhea-AI Summary

The Board of Directors of General American Investors (NYSE:GAM) has declared a combined $1.00 per share dividend and distribution. This comprises $0.87 from long-term capital gains and $0.13 from undistributed net investment income for 2022. Payments are scheduled for December 29, 2022 to stockholders of record on November 14, 2022. Additionally, a dividend of $0.371875 per share will be paid in cash on December 27, 2022 to preferred stockholders. As of October 31, 2022, the firm's net assets reached approximately $1.0 billion.

Positive

• Declared a total dividend and distribution of $1.00 per share, enhancing shareholder income.
• Solid financial position with net assets of approximately $1.0 billion.

Negative

• Decline in the market price of common stock, closing at $36.41, below the net asset value of $43.73 per share.

NEW YORK--(BUSINESS WIRE)-- Today, the Board of Directors of General American Investors Company, Inc. (NYSE symbol – GAM), a closed-end investment company, declared a combined dividend and distribution of $1.00 per share on its outstanding shares of common stock as follows:

• A distribution of $0.87 per share from net long-term capital gains on securities sold.
• A dividend of $0.13 per share from estimated undistributed net investment income for the full year 2022.

Determination as to taxability will be provided in January 2023. Both amounts are payable on December 29, 2022 to stockholders of record on November 14, 2022, and are to be included in stockholders’ Federal income tax returns for 2022. Holders of common stock will receive the dividend and distribution under one of two options:

1. Receive additional full and fractional shares of the Company’s common stock for the combined total dividend and distribution of $1.00 per share or,
2. Elect to receive cash for the dividend and distribution.

The Board of Directors declared on its 5.95% Cumulative Preferred Stock, Series B, a dividend and distribution of $0.371875 per share payable in cash on December 27, 2022 to holders of record on December 7, 2022. This quarterly dividend and distribution represents a payment for the accrual period from September 26, 2022 through December 26, 2022. Preferred shareholders will be informed in January 2023 as to taxability of the dividend and distribution.

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 October 31, 2022, the Company had net assets of approximately $1.0 billion applicable to its 23.9 million shares of common stock outstanding. The net asset value of the common stock of the Company on October 31, 2022 was $43.73 per share and the closing price was $36.41 per share. The aggregate liquidation value of the Company’s preferred stock is $190.1 million (liquidation preference $25.00 per share). Its preferred shares (symbol GAM Pr B) are also listed on the NYSE.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221102005753/en/

Company Contact:

Eugene S. Stark

Vice-President, Administration

(212) 916-8447

Source: General American Investors Company, Inc.

FAQ

What is the dividend amount declared by GAM for 2022?

General American Investors declared a total dividend and distribution of $1.00 per share.

When is the dividend payment date for General American Investors?

The dividend and distribution are payable on December 29, 2022.

What are the components of the $1.00 distribution per share from GAM?

The distribution includes $0.87 from long-term capital gains and $0.13 from net investment income.

What is the net asset value of GAM's common stock as of October 31, 2022?

The net asset value of GAM's common stock on October 31, 2022, was $43.73 per share.