GE Set to Receive $6.5 Billion in Dividends From GE Capital This Year
General Electric announced today it is poised to receive some $6.5 billion this year in dividends from its financial services arm, GE Capital Corp. It already paid $447 million in first-quarter earnings dividends to GE on April 19. Earnings-dividend payments are planned at 30% of GECC's total 2013 earnings and the yearly payment will include $4.5 billion in a special dividend.
GE Chairman and CEO Jeff Immelt said: "This announcement is consistent with our goal to reduce the overall size of GE Capital and for it to return significant cash to GE."
GECC grew its earnings 9% during the first quarter while ending net investment (excluding cash and equivalents) declined 7% to $402 billion. GECC ended the quarter with $68 billion in cash, and its Tier 1 common ratio under Basel 1 improved by 65 basis points to 11.1%.
General Electric plans to return $18 billion to shareholders in 2013, including the repurchase of $10 billion of stock. Its regular dividend of $0.19 per share annualizes to a rate of $0.76 per share, yielding 3.2% based on the closing price of its stock on May 17.
The article GE Set to Receive $6.5 Billion in Dividends From GE Capital This Year originally appeared on Fool.com.Fool contributor Rich Duprey owns shares of General Electric Company. The Motley Fool owns shares of General Electric Company. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.