General Electric: The Bullish Case Continues To Build For This Stock With A 4% Yield

Dec.13.11 | About: General Electric (GE)

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.

  1. It just raised its dividend 13% to 68 cents per share per annum. This is GE’s fourth increase in two years.
  2. Tax loss selling is winding down and GE should benefit from being part of the “Dogs of the Dow” index next year.
  3. 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)

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4 reasons why GE is a solid value going into 2012 at under $17 a share:

  1. The stock seems have solid technical support at the $15 level (See Chart)
  2. General Electric now yields a robust 4% with prospects for more dividend increases in 2012. It also has an AA+ rated balance sheet.
  3. The stock has a forward PE of under 11, which is a 25% discount to its five-year average.
  4. 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.