The GE Capital Corp. finance unit of Fairfield conglomerate General Electric Co. will pay its parent a $475 million second-quarter dividend, likely the first installment of a planned $4.5 billion special dividend in 2012, authorities say.
GE said GE Capital's second-quarter dividend -- accounting for about a third of the unit's profits -- reflects a resumption of payments halted in 2009 due to the then global financial crisis.
The special dividend must be approved by GE Capital's board of directors, authorities said Thursday.
GE Chairman and CEO Jeff Immelt said the goal has been for GE Capital to resume upstreaming to its parent a portion of this year's cash earnings.
GE Capital's liquidity is up to $76 billion, while its Tier 1 capital ratio stands at 10.4 percent. Its net income in 2011 was $6.6 billion.
Parent GE plans to use GE Capital's dividend proceeds to accelerate its previously announced plan to buy back its common stock, depending on market conditions, starting in the second quarter.