Dividends and GE cannot guarantee dividend, CEO says

One of the oldest companies in the US has be General Electric or GE which has its roots connected to Thomas Edison and the founding of electricity or at least the commercialization of it. GE is over 126 years old and for many years owing and keeping GE shares would have been a great thing for your portfolio. Prior to 2008 it was number one or a significant player in 5 different profitable ventures and its senior management felt they should be top 3 in the areas where they operate. Then 2008 happened and GE lost money on its credit division and soon became a smaller company. The company has retained its power, aviation, health care and recently bought Baker Hughes  oil and gas.

While having a great assets means the company will continue if it is not profitable the shares fall the company will be restructured. The example of GE shows as an investor you may like a great many companies but have alternatives just in case.

Linking to dividend paying stocks, with some companies it seems they were the darlings of the industry, think a few years ago about Jack Welch and his management style. Now GE has changed, it did not do anything bad, the world changed. The company still makes money just not as much as they used to.

There are more questions than answers, till the next time – to raising questions.

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