by Christopher Freeburn | May 16, 2012 4:05 pm
General Electric (NYSE:GE) announced on Wednesday that it’s financing operation, GE Capital, will pay the company a special $4.5 billion dividend for this year and resume regular dividend payments in the second quarter.
Shares of GE rose more than 3% in late Wednesday trading.
Dividend payments from GE Capital to its parent stopped in 2008 when the unit sustained credit losses of $32 billion and required financial support from GE to maintain operations.
The company says GE Capital will pay a $475 million dividend for the three months ending in June.
Reuters noted that the plan had been approved by Federal Reserve regulators and that the resumption of dividend payments was well ahead of many analysts’ forecasts.
Annual dividend payments will amount to 30% of GE Capital’s earnings for the year, not including the $4.5 billion payment.
Quarterly dividend payments to GE will resume with the second-quarter payment of $475 million.
General Electric said the payments from GE Capital would fund share repurchases this year.
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