Why GE Will Increase Its Dividend
The following video is part of our "Motley Fool Conversations" series, in which industrials editor/analyst Brendan Byrnes discusses topics around the investing world.
In today's edition, Brendan discusses the news that many GE investors have been waiting for: GE Capital will again distribute a dividend to parent General Electric. There will be both a regular quarterly dividend of roughly 30% of GE Capital's earnings and a one-time $4.5 billion dividend to the parent company this year. This will improve GE's already strong cash position, and it's likely to lead to further dividend increases from GE as well as share repurchases, depending on market conditions. Overall, it was very good news for GE investors, and the stock rose nearly 4% on the day.
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At the time this article was published Brendan Byrnes owns shares of United Technologies. The Motley Fool has no positions in the stocks mentioned above. Motley Fool newsletter services recommend 3M. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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