> GE only missed one dividend, the return will certainly not be 3.0%. > you dopes you need read more and blog less
GE have announced that the dividend is being reduced to 10¢ from Q3 2009, with no suggestion that it will be raised again any time soon. They did not "miss" a dividend, they have cut the dividend going forward.
It is very unlikely that they will raise the dividend directly back to 31¢. Much more likely is 4 quarters of 10¢ followed by increases of 10-20% each year over the coming years. It will take a long time for the dividend income to return to what it was previously.
>even with the last dividend cut the stock yields over 9%
You need to check your numbers. With a quarterly payout of $0.10 against a stock price of $12.86, the yield on this stock is 3.1% after the dividend cut, not 9%.
Conventional wisdom says that your 92-year-old mother should have cashed out her stocks decades ago. Stocks can (and do, as history has taught us) go down as well as up, and if you can't afford to hold out for at least a five-year horizon, you should not be invested in the markets.
As a considerably younger investor, I look at the current time as the opportunity of a lifetime to establish a sound investment portfolio at great prices. In 30 years, I am confident that it will matter not one bit whether I bought at $15, $17, or even $25. I am confident that this blip will pass, that GE will continue to generate good profits with all its businesses, and that I will retire with a substantial nest egg thanks to my decision to invest today.
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> GE only missed one dividend, the return will certainly not be 3.0%.
> you dopes you need read more and blog less
GE have announced that the dividend is being reduced to 10¢ from Q3 2009, with no suggestion that it will be raised again any time soon. They did not "miss" a dividend, they have cut the dividend going forward.
It is very unlikely that they will raise the dividend directly back to 31¢. Much more likely is 4 quarters of 10¢ followed by increases of 10-20% each year over the coming years. It will take a long time for the dividend income to return to what it was previously.
Time to Reenter GE [View article]
Announced by GE at the end of February:
online.wsj.com/article...
Time to Reenter GE [View article]
You need to check your numbers. With a quarterly payout of $0.10 against a stock price of $12.86, the yield on this stock is 3.1% after the dividend cut, not 9%.
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As a considerably younger investor, I look at the current time as the opportunity of a lifetime to establish a sound investment portfolio at great prices. In 30 years, I am confident that it will matter not one bit whether I bought at $15, $17, or even $25. I am confident that this blip will pass, that GE will continue to generate good profits with all its businesses, and that I will retire with a substantial nest egg thanks to my decision to invest today.
Disclosure: Long in GE