GE Issues Big Surprise Dividend Hike... The 2012 Model Dividend Portfolio Grows Again (GE, BRK-A)

Industrials

Published: December 9, 2011 11:43 am

Last Updated: April 27, 2020 10:00 pm

24/7 Wall St. has just this week released its 2012 Model Dividend Portfolio and General Electric Co. (NYSE: GE) was one of the members of that dividend portfolio. The conglomerate has just come out and surprised us with a dividend hike. Common sense would have dictated that this hike would have come in 2012.

GE raised its quarterly payout by $0.02 to $0.17 per quarter as the company tries to move back towards its old payout rate. This dividend will not come until 2012 and is payable on January 25, 2012 to shareholders of record as of December 27, 2011. The stock’s ex-dividend date is December 22, 2011.

Again, this is even sooner than we expected and it was not expected by many in the market. GE shares were already yielding 3.7% as is. Now the stock is up 2.9% at $16.78 and the new dividend yield will be just over 4% now.

Jeff Immelt noted that GE has redeemed the Berkshire Hathaway Inc. (NYSE: BRK-A) preferred shares and is redeploying its NBC Universal capital into other growth areas. It was just this week that the company’s GE Capital forecast that its metrics have continued to improve and that it would start paying a dividend back to the parent company as soon as it was cleared to do so. Be advised that this is the fourth dividend hike in two years since GE had to cut its payout to more easily get through the recession.

Immelt also noted, “We believe that the GE business model will continue to deliver strong earnings and cash flow growth going forward.”

As far as what this translates to based upon the Thomson Reuters consensus estimate of $1.56 EPS for 2012, the dividend payout ratio is about 43.5% of expected earnings per share. As far as the 2011 consensus of $1.37 EPS, the payout ratio is far higher at nearly 50%.

If you want to receive the full 24/7 Wall St. 2012 Model Dividend Portfolio you can sign up in the email submission below. Each morning we send our free email list subscribers a snapshot of the key feature stories, the top daily analyst upgrades and downgrades, previews for key events, and many other aspects governing your finances.

JON C. OGG

Want to Retire Early? Start Here ^(Sponsor)

Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?

Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.

Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.

Have questions about retirement or personal finance? Email us at [email protected]!

By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.

By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.