NEW YORK – General American Investors Company, Inc. (NYSE:GAM), a closed-end investment company, has declared a combined dividend and distribution totaling $4.50 per share for its common stockholders, to be paid on December 27, 2024. The payment comprises a $4.05 per share distribution from net long-term capital gains and a $0.45 per share dividend from estimated undistributed net investment income for 2024.
Common stockholders as of the record date, November 18, 2024, will have the option to receive additional shares or elect a cash payout. The taxability of these amounts will be clarified in January 2025 and are intended for inclusion in the stockholders’ Federal income tax returns for 2024.
Additionally, a dividend and distribution of $0.371875 per share has been declared for the holders of the 5.95% Cumulative Preferred Stock, Series B, payable in cash on December 24, 2024. This is applicable for the accrual period spanning from September 24, 2024, through December 23, 2024, with the record date set for December 9, 2024. The tax details for preferred shareholders will also be provided in January 2025.
In a move to enhance shareholder value, the Board of Directors has authorized the repurchase of an additional 1,000,000 shares of common stock, contingent upon the shares trading at a minimum 8% discount from their underlying net asset value. This action is part of an ongoing buyback program initiated in March 1995, which has seen the company repurchase 33.2 million shares at an average discount of 14.2%, costing a total of $1.0 billion.
Founded in 1927 and listed on the NYSE since 1930, General American Investors focuses on long-term capital appreciation by investing in companies with strong growth potential. As of October 31, 2024, the company reported net assets of approximately $1.44 billion, with the common stock’s net asset value per share at $61.41 and a closing price of $52.75. The company also noted the aggregate liquidation value of its preferred stock at $190.0 million.
This financial update is based on a press release statement from General American Investors Company, Inc.
InvestingPro Insights
General American Investors Company’s recent dividend declaration aligns with its strong track record of shareholder returns. According to InvestingPro data, the company boasts a dividend yield of 5.0%, which is particularly attractive in the current market environment. This generous dividend policy is supported by an InvestingPro Tip highlighting that GAM has maintained dividend payments for 52 consecutive years, demonstrating a long-standing commitment to returning value to shareholders.
The company’s financial health appears robust, with a market capitalization of $1.26 billion and a notably low P/E ratio of 4.45, suggesting the stock may be undervalued relative to its earnings. This valuation metric is particularly interesting given another InvestingPro Tip indicating that the stock is trading near its 52-week high, with a price at 99.61% of its peak.
GAM’s revenue growth has been solid, with a 19.93% increase over the last twelve months as of Q2 2024. This growth, combined with a 100% gross profit margin, underscores the company’s efficient operations and potential for continued profitability, which is further confirmed by an InvestingPro Tip stating that GAM has been profitable over the last twelve months.
For investors seeking more comprehensive analysis, InvestingPro offers additional tips and metrics that could provide deeper insights into GAM’s financial position and future prospects. Currently, there are 6 more InvestingPro Tips available for GAM, which could be valuable for investors considering the stock’s potential in light of its recent dividend announcement and share repurchase program.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
