FAIRFIELD, Conn.--(BUSINESS WIRE)--GE [NYSE: GE] announced today that the Board of Directors of GE Capital Corporation (GECC) has declared a quarterly dividend of $475 million payable to its parent GE in the second quarter 2012. 2012 dividend payments, which are subject to GECC Board approval, are planned at 30% of GECC’s total 2012 earnings. In addition, GECC plans a $4.5 billion special dividend to GE in 2012, subject to GECC Board approval. The historical dividend was suspended in 2009 during the financial crisis.
“As we have stated, our goal has been to resume the GE Capital dividend to GE in 2012,” GE Chairman and CEO Jeff Immelt said. “With this announcement, GE Capital will return cash to GE beginning this quarter. This action demonstrates the strength of GE Capital and the significant actions taken to strengthen its liquidity, capital, asset quality and profitability. These actions have included increasing liquidity to $76 billion, increasing Tier 1 capital to 10.4%, reducing ending net investment to $436 billion and increasing net income in 2011 to $6.6 billion.”
GE plans to accelerate its common stock buyback starting in the second quarter, depending on market conditions.
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Forward-Looking Statements
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