An old friend of investors from AIG (NYSE:AIG) has returned, specifically the company's common stock dividend. The insurance giant reinstated its shareholder payout, declaring a quarterly distribution of $0.10 per share. This will be paid on September 26 to holders of record as of September 12. 

The gap between dividend payments will be just over half a decade. The company last dispensed one, amounting to $0.22 per share, on Sept. 19, 2008.

The reinstated distribution annualizes to $0.40 per share, yielding 0.8% at AIG's most recent closing stock price of $47.07.

The firm also launched a common stock repurchase program, authorizing $1.0 billion for the purpose. The buybacks will be effected through various types of open market and privately negotiated transactions.

At the moment, AIG has just under 1.5 billion shares outstanding, and its market capitalization stands at $69.5 billon.

Fool contributor Eric Volkman has no position in AIG. The Motley Fool recommends and owns shares of AIG and has the following options: long January 2014 $25 calls. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.