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General American Investors renews preferred stock buyback

Published 05/12/2024, 08:36 am
GAM
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The information provided is based on a press release statement from General American Investors Company, Inc. The company's approach to share repurchases reflects a strategic effort to optimize shareholder value and manage its capital structure efficiently. The company maintains a GREAT overall financial health score according to InvestingPro metrics, with notably low price volatility and consistent profitability over the last twelve months. The company maintains a GREAT overall financial health score according to InvestingPro metrics, with notably low price volatility and consistent profitability over the last twelve months.

The company's board of directors has decided to continue the buyback program, which is designed to benefit shareholders when the market price is deemed favorable. To date, General American Investors has repurchased and retired a total of 398,447 shares of Preferred Stock, underlining its ongoing strategy to manage share capital effectively. This program operates independently from the common stock repurchase program, allowing the company to adjust its capital structure through both avenues.

The information provided is based on a press release statement from General American Investors Company, Inc. The company's approach to share repurchases reflects a strategic effort to optimize shareholder value and manage its capital structure efficiently. The company maintains a GREAT overall financial health score according to InvestingPro metrics, with notably low price volatility and consistent profitability over the last twelve months.

The information provided is based on a press release statement from General American Investors Company, Inc. The company's approach to share repurchases reflects a strategic effort to optimize shareholder value and manage its capital structure efficiently.

In other recent news, General American Investors Company, Inc. has declared a combined dividend and distribution totaling $4.50 per share for its common stockholders. This payment includes 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. In addition, a dividend and distribution of $0.371875 per share has been declared for the holders of the 5.95% Cumulative Preferred Stock, Series B.

The company has also authorized the repurchase of an additional 1,000,000 shares of common stock, as part of an ongoing buyback program initiated in 1995. This move is contingent upon the shares trading at a minimum 8% discount from their underlying net asset value. The buyback program has so far seen the company repurchase 33.2 million shares at an average discount of 14.2%, costing a total of $1.0 billion.

These are among the recent developments that could influence investment decisions regarding General American Investors.

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