GE Slashes Its Dividend
General Electric (GE) is cutting its dividend for the first time since 1940 from $1.24 per share to .40 per share. GE is cutting its dividend 68% after numerous comments from GE about how the dividend was safe through all of 2009. The stock has since slumped to $8.50 per share. General Electric is trying to save about 9 billion dollars through its dividend cut. The stock was already trading at a level that seemed to expect a dividend cut. GE will probably have a huge loss from GE Capital when earnings are announced on April 17th. CNBC continues to defend Immeltand is describing the dividend cut as a wise move. The truth is that GE is going to lose its AAA credit rating and the dividend will likely be slashed further. According to some analysts, GE Capital is worthless due to massive international mortgage losses. Based on the company’s performance over the last 7 years; Immelt should be let go.
