GE Dividend Hike, One More Reason To Own For A Decade (GE)

There had been a rumor that General Electric Company (NYSE: GE) was going to hike its dividend again, and that rumor turned out to be true.  GE just announced that it has raised its quarterly dividend by 17% from $0.12 per share per quarter up to $0.14 per share per quarter.

GE shares just popped 1.6% to $17.41.  The new $0.56 annual payout generates a new implied yield today of roughly 3.2%.  The prior yield was closer to 2.8%. This is just one of the reasons that we named GE as one of the ten companies to hold for the next decade and that recent boost from GE Capital adds to the strength ahead.

The dividend is payable January 25, 2011 to holders of record at the close of business on December 27, 2010. The ex-dividend date is December 22, 2010.

GE also noted that it plans to continue capitalizing on inorganic growth opportunities, opportunistic share repurchases, and investing in innovation.  Jeff Immelt noted, “We are able to increase the GE dividend for the second time this year because of continued strong cash generation, accelerated recovery at GE Capital and solid underlying performance in our Industrial businesses through year-end 2010.”  All of this ties in with what Jeff Immelt gave up in an exclusive GE CEO interview ahead of its 2010 annual shareholder meeting.

JON C. OGG