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 thisarticle was published Brendan Byrnesowns shares of United Technologies. The Motley Fool has no positions in the stocks mentioned above.Motley Fool newsletter services recommend3M. Try any of our Foolish newsletter servicesfree for 30 days. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

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