Hedge funds cut NFLX, keep big bets on MSFT, AMZN, add NVDA
NEW YORK - General American Investors Company, Inc. (NYSE:GAM), a closed-end investment company trading at $52.76 with a market capitalization of $1.23 billion, has declared a spill-over capital gain distribution of $0.25 per share for its common stock. This distribution comes from net long-term profits on securities sold from November 1, 2024, through December 31, 2024, and is anticipated to be taxable as long-term capital gain income. Stockholders of record as of February 24, 2025, will receive the cash payment on March 7, 2025, and it will be included in their federal income tax returns for the year 2025.
The company’s Board of Directors has announced a dividend and distribution of $0.371875 per share on its 5.95% cumulative preferred stock, series B. According to InvestingPro, GAM has maintained dividend payments for 53 consecutive years, with the current dividend yield standing at an attractive 8.57%. This cash payment, scheduled for March 24, 2025, to shareholders on record as of March 7, 2025, covers the accrual period from December 24, 2024, through March 23, 2025. The taxable portions of this distribution will be communicated to preferred shareholders in early 2026.
General American Investors, established in 1927 and publicly traded since its inception, focuses on long-term capital appreciation by investing in companies with strong growth potential. With total net assets of approximately $1.4 billion across 23.5 million shares of common stock and an attractive P/E ratio of 4.34, the company continues to be a significant player in the investment community. InvestingPro analysis shows the company maintains a GREAT financial health score of 3.22, with 4 additional exclusive insights available to subscribers. The aggregate liquidation value of the preferred stock is reported at $190 million (NYSE:GAM Pr B).
This announcement is based on a press release statement from General American Investors Company, Inc.
"In other recent news, General American Investors Company, Inc. has renewed its authorization to repurchase up to 1,601,553 shares of its 5.95% Cumulative Preferred Stock, Series B, a move aimed at capital management. This decision has been made to proceed when the shares trade below the liquidation preference of $25 per share. The company’s board of directors continues the buyback program, designed to benefit shareholders when the market price is favorable. To date, the investment firm has repurchased and retired a total of 398,447 shares of Preferred Stock, emphasizing its strategy to manage share capital effectively.
This program operates separately from the common stock repurchase program, allowing General American Investors to adjust its capital structure through both avenues. As of recent developments, the company reported total net assets of approximately $1.4 billion, with 22.9 million shares of common stock outstanding. Additionally, the liquidation value of the company’s 7.6 million shares of 5.95% Cumulative Preferred Stock, Series B is reported at $190.0 million. This approach to share repurchases reflects a strategic effort by General American Investors to optimize shareholder value and manage its capital structure efficiently."
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.