General Electric Co. (GE) announced Monday that the Board of Directors of GE Capital Corporation had approved plans for GE Capital to pay $6.5 billion in dividends in 2013 to GE.
The company said that earnings-dividend payments are planned at 30% of GE Capital's total 2013 earnings. GE Capital paid the first-quarter earnings-dividend of $447 million to GE on April 19, 2013. The earnings-dividend payments are subject to GE Capital Board and GE Board Risk Committee approvals.
In addition, GE Capital plans $4.5 billion in special dividends to GE in 2013, subject to the same approvals.
"This announcement is consistent with our goal to reduce the overall size of GE Capital and for it to return significant cash to GE," said GE Chairman and CEO Jeff Immelt.
Under its balanced capital allocation plan of investing for its long-term growth, maintaining an attractive dividend pay-out and repurchasing stock, GE said it intends to return $18 billion cash to its shareholders in 2013, including repurchase of $10 billion of stock.
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