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GE Capital to pay $4.5B special dividend to parent

FAIRFIELD, Conn. (AP) -- General Electric Capital Corp. will pay a $4.5 billion special dividend this year to its parent company, restarting payments that were suspended during the recession.

The special payment is subject to the approval of the board of GE Capital, which is GE's finance unit.

General Electric Co. suspended dividend payments in 2009 during a freeze in the credit markets. The Fairfield, Conn., company has said its goal was to resume dividends this year.

The GE Capital board has declared a $475 million quarterly dividend payable to GE during the second quarter.

GE also plans to accelerate its buyback of common stock in the second quarter, depending on market conditions.

Shares of GE rose 67 cents, or 3.6 percent, to $19.07 in early trading. In the past year, the price has ranged between $14.02 and $21 per share.