General Electric (NYSE: GE) may be one of the most admired companies in the world, at least according to Fortune. But, Wall Street hates the company and has driven its stock to multi-year lows. The concerns have been printed dozens of times in the press: GE is too large. It has too many units that do not do well. None of the firm's divisions fit well together.
But, GE now has an attraction all its own. It pays a yield of nearly 5%. The company is still tremendously profitable and has $15 billion in cash.
If the U.S. stock market continues to drop, the successful investing tactics of the last several years, which involve putting money into is stocks because equities in general are rising quickly, may not be a good way to make money this year or next.
There are a handful of companies with iron-clad balance sheets and big dividends. The stocks of these may not go up, but their dividends are likely to stay intact. GE is at the head of this list.
Douglas A. McIntyre is an editor at 247wallst.com
Cramer on BloggingStocks: Don't paint everything with the jobs brush
Seven banks go up in smoke ahead of the holiday weekend
Sears offering hedge for consumers who lose their job -- good idea?
Reader Comments (Page 1 of 1)
6-29-2008 @ 12:28PM
barneyrin said...
i love you doug
6-29-2008 @ 12:59PM
Bill Rothschild said...
GE is not too large...WalMart is bigger and is doing fine...but it is too complex and gets more complex all the time... I do think it is a good investment but the leadership should examine its "GO BIG/GO GLOBAL/ Portfolio continuous change strategy. It needs to focus on operating the company and not just being a mutual fund.
It should consider providing the opportunity for investors to invest in SECTORS of the company, via tracking stocks, and not have to invest in the entire company.
Bill Rothschild, Author of the THE SECRET TO GE's SUCCESS, now in Chinese, Indonesian, Korean, Japanese, Spanish and English...
6-29-2008 @ 2:27PM
gumbo koontz said...
General Electric can buy General Motors!! Both is international ! There is much to share between them. GE would double revenues overnight and make its 10 billion shares outstanding more justifable. Many car buyers are ready to scoop up every fuel efficent car GM manage to churn out everyday. The unsold SUVs and PickUps are just a pothole to dodge.. I had emailed to Investor Relations at GE several times and received replies that it is being passed around for consideration.. I hope it will become a reality soon... it is a non brainer!
6-29-2008 @ 2:28PM
gumbo koontz said...
General Electric can buy General Motors!! Both is international ! There is much to share between them. GE would double revenues overnight and make its 10 billion shares outstanding more justifable. Many car buyers are ready to scoop up every fuel efficent car GM manage to churn out everyday. The unsold SUVs and PickUps are just a pothole to dodge.. I had emailed to Investor Relations at GE several times and received replies that it is being passed around for consideration.. I hope it will become a reality soon... it is a non brainer!
6-29-2008 @ 2:30PM
gumbo koontz said...
The only reason GM and Ford had been losing market share is that they are not producing enough fuel efficient cars. Car buyers have nowhere to go but Toyotas and Hondas...... GM and Ford need money and manpower to boost production FAST! GE can help!
6-29-2008 @ 2:32PM
gumbo koontz said...
The only reason GM and Ford had been losing market share is that they are not producing enough fuel efficient cars. Car buyers have nowhere to go but Toyotas and Hondas...... GM and Ford need money and manpower to boost production FAST! GE can help! GE divdends is not as important as growth opportunities GE find. GE can buy GM or Ford to grow earnings .. Dividends will follow... Imelt must be a womanizer not to notice the big opporunity in GM and Ford!!!
6-29-2008 @ 2:34PM
gumbo koontz said...
UAW had been blaming shoddy management at GM and Ford. So muzzle UAW with GE takeover of GM or Ford . UAW will have nothing left to argue or bs about...
6-29-2008 @ 2:34PM
gumbo koontz said...
UAW had been blaming shoddy management at GM and Ford. So muzzle UAW with GE takeover of GM or Ford . UAW will have nothing left to argue or bs about...
6-29-2008 @ 2:36PM
gumbo koontz said...
I dont think there will be any anti trust issues if GE buy GM or Ford. no issues whatsoever!!
6-29-2008 @ 3:56PM
Sheldon L said...
Looks like Gumby is praying for GE to bail him out GM/F positions -- that would be a huge mistake!