UPDATE 1-GE Capital plans to pay $6.5 bln in dividends to GE

Mon May 20, 2013 10:46am EDT

* Dividend payment part of plan to reduce GE Capital's size

* Payments planned at 30 pct of GE Capital's 2013 profit

May 20 (Reuters) - General Electric Co said its financial unit GE Capital Corp would pay $6.5 billion in dividends to the parent in 2013 as part of a plan to reduce the unit's size.

"This announcement is consistent with our goal to reduce the overall size of GE Capital and for it to return significant cash to GE," GE CEO Jeff Immelt said in a statement on Monday.

The dividend payment includes a special dividend of $4.5 billion, the company said.

The dividend payments are planned at 30 percent of GE Capital's total 2013 earnings, GE said. GE Capital paid a first-quarter earnings dividend of $447 million on April 19.

GE Capital, which won regulatory approval to resume returning some of its profit to GE last May, had paid $6.4 billion to the parent company in 2012.

General Electric's shares were almost flat at $23.45 in morning trading on the New York Stock Exchange.