Today GE increased its quarterly dividend from $.22 a share to $.23 a share. This represents a 4.54% from last year's increase. Since I currently own 411.4 shares of GE, my yearly dividends will increase by $16.46.
The ex-dividend date is December 18th and the pay date is January 26th.
I must admit this is not overly impressive in my opinion, but I will take a pay raise regardless of the amount. I am glad that I waited for this announcement before I added more shares. I will probably wait to add more GE if the yield gets closer to 4%.
I'm happy to hear about the dividend increase but like you I'm not too impressive with the amount. We have a small position in GE and will probably wait a little bit to determine whether to add more.
ReplyDeleteTawcan,
DeleteConsidering the recent turmoil in the markets, it is good to have some positive news even if it's only a 1 cent raise in GE's dividend.
MDP
MDP,
ReplyDeleteThe market sure didn't like the 5% hike as the share price is looking to break below $25. I could see adding closer to $23/24 and 4%, and will continue to monitor.
DWC
DWC,
DeleteI will look to add around 22-23 as well since that would be a 4% yield. As far as the markets, they really didn't like much of anything yesterday....Dow down 315 points!
MDP
While not the most exciting increase, GE is in the middle of a big transition period. I would anticipate that future increases will bump up once earnings begin to reflect the 'new look' GE. In the meantime, I'm happy to have gotten the 5%.
ReplyDeleteW2R,
DeleteI am counting on higher increases in the future as well. One penny raises should be left to utilities and T.
MDP
We also own GE so definitely happy to hear that we'll be getting another raise. :)
ReplyDeleteCheers to dividend growth! AFFJ
AFFJ,
DeleteCongrats on the raise my friend!
MDP
I just commented on another blog about this increase. While it seems that several of the DGI bloggers are a little underwhelmed with this raise, I feel happy to get it. I still think the future decade of GE will be a good one considering how much leaner they are as a company these days compared to just a few years ago.
ReplyDeleteDivHut,
DeleteI hope GE has a bright future as well. The last 15 years have not been good for this industry giant.
MDP
I prefer dividend raises at x2 rate of inflation so roughly 8% or more. But a raise is a raise and better then nothing or a cut!
ReplyDeletePMU,
DeleteI agree. Yesterday I was pretty bummed that the raise was small. But I have thought about it and hopefully GE will continue to grow and bigger raises will come in the future.
MDP
Something I always try to keep in mind: I don't typically expect industrials to increase dividends every year at an 8-10% clip. I remember a couple years ago when EMR only increased by 2.5%. Was upset, but held. Then they did better last year, and this year it was 9%.
ReplyDeleteI think GE's still a pretty solid purchase at this level and yield.
DW
DW,
DeleteI agree. I was disappointed yesterday, but I feel better about it today. I guess since my oil companies have been taking a beating, I was looking for some better news from GE. :-)
MDP
Same here. Even though I wish the increase to be higher, I feel it is better than nothing. Not sure if I want to add more since GE is already the largest in my portfolio. But might consider if it gets down to the ~23 levels.
ReplyDeleteDGJ,
DeleteI agree with your entry price around 23. I will pick up some more shares around the 4% yield level.
MDP