GE's dividend cut misses the mark

Since late last year, when the market began to become concerned that GE (GE) might have to cut its dividend, the company has made a mighty effort to convince investors that the move would not be necessary. The firm began to hedge on that about a month ago.

Today, GE confirmed fears that trouble at its financial services operation would undermine the company's balance sheet and cash flow as it cut its pay-out from $0.31 to $0.10 a share. According toThe Wall Street Journal, the move will save GE $9 billion a year.