GE Raises Dividend, 15 More Companies Follow Suit

General Electric Company (GE) operates as a technology, media, and financial services company worldwide. Back in 2009, General Electric cut dividends by 68% to 10 cents/share. Investors, who just a few months earlier were reassured by the company’s CEO that the dividend is safe, rushed to the exits, sending the stock price to its lowest levels in a decade. The company halted its stock buyback program, and issued shares to the public. Legendary Investor Warren Buffett also made an investment in the conglomerate, by putting several billion in exchange for preferred stock yielding 10%. Almost one and half years after the dividend was cut, the company raised its quarterly dividend 20% to 12 cents/share on Friday. The news sent the stock over 3% higher for the day. Whether the company can rebuild its streak of consecutive dividend increases remains to be seen however.We are able to restore the GE dividend at a historical payout level for 2010 earlier than previously anticipated and to extend our share buyback program because of continued strong cash generation, recovery at GE Capital, and solid underlying performance in our Industrial businesses through the first half of 2010,” GE CEO Jeff Immelt said. “In addition, the Company continues to plan on capitalizing on strategic and financially attractive inorganic growth opportunities.... Read more