General Electric Dividend Update
Dow component General Electric (NYSE: GE) may have up to $25 billion in cash in its war chest by the end of this year, putting the company in a position to repurchase shares by the end of the year and perhaps raise its dividend in 2011. GE CEO Jeffrey Immelt said on Wednesday that he expects his company to show strong earnings growth over the next couple of years.
About: General Electric (NYSE: GE), General Electric, GE CEO Jeffrey Immelt, Dow, Dow Chemical
Immelt added that an announcement on a dividend increase could come by the end of 2010. A dividend increase from GE could take the quarterly payout to 12 cents a share from 10 cents, according to Bloomberg estimates. GE cut its quarterly dividend to 10 cents a share from 31 cents in February of 2009 in an effort to conserve cash in the wake of the financial crisis. It was GE's first dividend cut since 1938. The company was formerly the biggest dividend payer in dollar terms.
GE halted share repurchases in September 2008, but Immelt said the company would be “opportunistic” about share buybacks. Immelt also said the company is looking to resume its acquisitive ways and is evaluating purchases in the $1 billion to $3 billion range.
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