GE slashes quarterly dividend 68% to 10 cents

[RedEarth]

Source: MarketWatch)

Economic bellwether General Electric Co. slashed its quarterly dividend by nearly 68% Friday, reversing a 31-year trend of annual increases to its payout.

The Fairfield, Conn., conglomerate said reducing the dividend to 10 cents a share from 31 cents will save the company $9 billion annually. The company has been paying a regular dividend for more than 100 years.

Shares of GE have fallen nearly 70% since mid-September, when financial markets were first strangled by the contracting economy, sending shock waves through the manufacturing sector. GE Capital was particularly impacted by the tighter restrictions on credit and declining asset values

Read more: http://www.marketwatch.com/news/story/GE-slashes-quarterly-dividend-save/story.aspx?guid=%7B618EAEEE-E61D-4522-A8B3-21D8DE89E8FE%7D

[high density]

1. I guess there were no more jobs to cut

Nine billion a year in savings just like that. When will other companies figure this out?

[Stuart G]

2. Much worse than that...

It is not just about saving money for the company. This stock is a key indicator on the economy.
Lessor dividends on this stock, mean many investors will have less income. Further, this shows that this company too is in a lot of trouble. More wealth lost, perhaps never to be regained. This will be a big issue this weekend.
More to come..much worse perhaps..

[ginnyinWI]

3. GE is a solid company.

Right now they are undervalued because of their financial sector. It doesn't take into account their many other assets. As soon as people realize this, the stock should come back. GE is a big, big infrastructure company--electrical and more. And Obama's stimulus money should directly affect its stock value once these projects get going.

We are some of the people who will lose those dividends so we are watching closely. At least they didn't stop paying dividends altogether.

As far as jobs: yes they have cut a lot of them. The guy in the cubicle next to my husband went--and he had 24 years experience. Now my husband has extra work to do--but he's doing it. And this is in their medical equipment division, something you would think wouldn't be so affected.

[freemarketer6]

4. They are anything but a solid company under Immelt. Welch

began the ruin of the company by buying too many companies. Immelt continued the process by pure incompetence.

[RUMMYisFROSTED]

5. Solid?

[ginnyinWI]

9. Yes, solid.

If they didn't have a financial sector they would be doing fine, even now. GE produces renewable energy--wind and solar--besides electrical systems. They make locomotives and jet engines. They produce healthcare equipment like CT scanners, MRI's, and many smaller machines. Their home appliances are a rather minor part,so it doesn't matter if people put off buying that new fridge.

About four years ago the CEO got GE going on green energy and it's going to be paying off now that the Dems have the freedom to spend some bucks on it.

Back in the 80s GE was also down to $8/share like it is now. Of course the stock has split several times since then, so in today's money it would be about $1.50/share. Five years later it was worth $50/share.

This is an excellent time to buy GE stock.

[bitchkitty]

11. It should have been their first resort. n/t

[w4rma]

6. Good. Dividends should be among the first things to be cut.

Cutting jobs, permanently harms the company's ability to do business.

[femrap]

7. Maybe we can get rid of Corporations

after all!!! I never thought I'd see such low stock prices of GM, GE, B of A, etc! It warms my heart. Corporations are the root of our problem....their personhood must be removed. And if they are people, they at some point must DIE (they never paid much in taxes.)

[sandnsea]

8. no profit, no dividend

They shouldn't get anything at all.

[JCMach1]

10. GE has and will continue to be profitable

http://finance.yahoo.com/q?s=ge

The reality is that a dividend cuts hurts investors such as institutional retirement funds that count on a secure, fixed level of income.

Are you vested in a retirement fund? You could be screaming for your own throat.