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 Company (NYSE: GAM) declared a combined dividend and distribution of $3.05 per share, consisting of $2.70 from net long-term capital gains and $0.35 from undistributed net investment income. These payments are scheduled for December 30, 2021, to shareholders on record as of November 15, 2021. Additionally, a dividend of $0.371875 per share for Cumulative Preferred Stock, Series B will be paid on December 24, 2021.

Positive

• Declared a significant dividend of $3.05 per share.
• $2.70 per share from long-term capital gains indicates strong performance.
• Dividend payments demonstrate confidence in financial stability.

Negative

• None.

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 $3.05 per share on its outstanding shares of common stock as follows:

• A distribution of $2.70 per share from net long-term capital gains on securities sold.
• A dividend of $0.35 per share from estimated undistributed net investment income for the full year 2021.

Determination as to taxability will be provided in January 2022. Both amounts are payable on December 30, 2021 to stockholders of record on November 15, 2021, and are to be included in stockholders’ Federal income tax returns for 2021. 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 $3.05 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 24, 2021 to holders of record on December 7, 2021. This quarterly dividend and distribution represents a payment for the accrual period from September 24, 2021 through December 23, 2021. Preferred shareholders will be informed in January 2022 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, 2021, the Company had net assets of approximately $1.3 billion applicable to its 23.8 million shares of common stock outstanding. The net asset value of the common stock of the Company on October 31, 2021 was $54.05 per share and the closing price was $45.36 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/20211103006060/en/

Eugene S. Stark

Vice-President, Administration

(212) 916-8447

Source: General American Investors Company, Inc.

FAQ

What is the dividend amount declared by General American Investors (GAM)?

The declared dividend amount is $3.05 per share.

When is the dividend payment date for General American Investors (GAM)?

The dividend payment date is December 30, 2021.

What is the record date for the dividend distribution of GAM?

The record date for the dividend distribution is November 15, 2021.

What portion of the GAM dividend comes from capital gains?

$2.70 per share comes from net long-term capital gains.

What is the dividend for preferred shares of General American Investors?

The dividend for preferred shares is $0.371875 per share.