Dividend and Long Term Outlook for GE

Guru Stocks Raising Dividends: General Electric Company
General Electric is one of the largest and most diversified industrial corporations in the world. General Electric Company has a market cap of $172.11 billion; its shares were traded at around $16.12 with a P/E ratio of 14.8 and P/S ratio of 1.1. The company raised its quarterly dividend 20% to 12 cents/share on Friday. The news sent the stock over 3% higher for the day. Whether the company can rebuild its streak of consecutive dividend increases remains to be seen however.

GE announced today second-quarter 2010 earnings from revenues decreased 4% to $37.4 billion. GE Capital Services’ (GECS) revenues fell 2% versus last year to $13.1 billion. Industrial sales were $24.4 billion, down 6% from the second quarter of 2009. Continuing operations (attributable to GE) were $3.3 billion, with EPS of $0.30 per share up 15% from the second quarter of 2009. Revenues were $37.4 billion for the quarter, down 4% from a year ago, impacted by lower GE Capital assets, industrial dispositions and lower equipment sales as expected.

The Unusual Suspects For This Week
General Electric Co. (NYSE: GE) is one that we’d want our readers to be involved in for a longer-term outlook. It has gotten through earnings season and is continuing to eliminate some of the finance unit’s dominance. NBC-Universal is still a deal under review but it is still in the process of being a stake divesting that will generate cash. With a 3% dividend yield after the hike and with its share buyback commencing immediately, there is probably more of a floor under the shares. After our review of conglomerates and their leadership over the broad market, we also found that G.E. is the conglomerate with the most implied upside for investors.