Declares Year-End Dividends and Distributions
General American Investors Company
New York, November 01, 2006 -- The Board of Directors of General American Investors Company, Inc. (NYSE symbol - GAM), a closed-end investment company, declared a combined dividend and distribution of $3.00 on its common stock as follows:
-- A Capital Gain Distribution of $2.638607 per share from net profits on securities sold during the period January 1 through October 31, 2006. This is long-term capital gain and is taxable as capital gain income.
-- An Income Dividend of $0.361393 per share from estimated accumulated undistributed income for the full year 2006. This is ordinary income and is expected to be taxable as qualified dividend income.
Both amounts are payable on December 21, 2006 to stockholders of record on November 10, 2006, and are to be included in stockholders' Federal income tax returns for 2006. Holders of common stock may elect to receive the dividend and distribution under one of the two options:
1. Receive additional full and fractional shares of the Company's common stock for the combined total dividend and distribution of $3.00 per share;
2. Receive cash for the dividend and distribution.
The Board of Directors also declared on its 5.95% cumulative preferred stock, series B, a dividend and distribution of $0.371875 per share payable in cash on December 26, 2006 to holders of record on December 7, 2006. This quarterly dividend and distribution represents a payment for the accrual period from September 25, 2006 through December 25, 2006. Preferred shareholders will be informed in early 2007 of the taxable portions of the dividend and distribution.
General American Investors was founded in 1927, has been publicly traded since its inception and has been listed on the NYSE since 1930. The objective of the Company is long-term capital appreciation through investment in companies with above average growth potential. As of October 31, 2006, the Company has total net assets of approximately $1.2 billion applicable to its 28.4 million shares of common stock outstanding. The net asset value of the common stock of the Company on October 31, 2006 was $41.98 per share and the closing price was $38.74 per share. The aggregate liquidation value of the Company's preferred stock is $200 million. Its preferred shares (symbol GAM Pr B) are also listed on the NYSE.
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