General Electric Boosts Dividend

General Electric says that it has raised its quarterly dividend from 10 cents per share to 12 cents per share. That's a 20% increase. This the first time the company has raised the dividend since last year, when it cut the quarterly payment to save cash.

The reason for the hike? GE says the company is generating increased levels of cash and strong cash flow and that its GE Capital business is recovering. Besides that, the company was also optimistic about its industrial businesses for the first half of this year.

Besides increasing the dividend, the company also says that it will extend its share buyback program, which was due to expire at the end of this year, to the end of 2013.

As for the dividend, it is payable to shareholders of record as of the close of business on September 20, 2010. The ex-dividend date is September 16, 2010.

The stock was up about 1.8% on the news.