8:09 a.m. ET with morning market action and comments from BernsteinResearch analyst Steven Winoker.
NEW YORK ( TheStreet) -- GE Capital plans to churn out even more cash than it did last year.
The board of directors of General Electric's (GE - Get Report) financial services subsidiary said on Monday it planned to pay the parent company a total of $6.5 billion in dividends during 2013, increasing from $6.4 billion during 2012.
GE Capital's regular dividends are planned to be 30% of operating earnings. During the first quarter, GE Capital paid the parent company a regular $447 million dividend to the parent, based on the financial segment's operating performance.With strengthening credit quality and a shrinking balance sheet, GE Capital plans again to kick large special dividends upstairs, to reduce the financial arm's excess capital. During 2013, GE Capital plans to make $4.5 billion in special dividend payments GE Capital had $529.5 billion in total assets as of March 31, declining from $573.5 billion in total assets a year earlier. The financial segment has been rumored to be considering selling its private label U.S. credit card portfolio, with loan balances of roughly $31 billion. Bank of America Merrill Lynch analyst Erika Penala suggested earlier this month that Citigroup (C - Get Report) would be the ideal purchaser for the portfolio, following the bank's deal to acquire Capital One's (COF - Get Report) private label card portfolio, in a deal that is expected to be completed in September.
General Electric CEO said in the company's press release on Monday that GE Capital's announcement "is consistent with our goal to reduce the overall size of GE Capital and for it to return significant cash to GE," and that GE Capital "ended the