As we end 2011 and look forward to 2012, one of my core positions, General Electric (NYSE:GE), looks like it is building momentum and should be a strong performer in the coming year.
3 recent and coming catalysts for General Electric.
- It just raised its dividend 13% to 68 cents per share per annum. This is GE’s fourth increase in two years.
- Tax loss selling is winding down and GE should benefit from being part of the “Dogs of the Dow” index next year.
- GE Capital will resume paying a dividend to its parent in 2012
General Electric – “General Electric Company operates as a technology, service, and finance company worldwide”. (Business description from Yahoo Finance)
(Click chart to expand)
4 reasons why GE is a solid value going into 2012 at under $17 a share:
- The stock seems have solid technical support at the $15 level (See Chart)
- General Electric now yields a robust 4% with prospects for more dividend increases in 2012. It also has an AA+ rated balance sheet.
- The stock has a forward PE of under 11, which is a 25% discount to its five-year average.
- The mean analysts’ price target on General Electric is $21 and Credit Suisse has a price target of $22 on GE.
Disclosure: I am long GE.