Tuesday, October 07, 2008

Is GE's dividend safe?

Hmmm... GE has gotten beaten down to the point where its current dividend yield is 6.11%, which seems quite attractive, provided that it is safe, which is a fair question. I still believe that GE needs a lot of restructuring, but it does have a lot of good solid business units which could be spun out. They do have a lot of dependence on commercial paper, but the new Fed program should help out on that front.

Unfortunately, I do not have any excess cash available for speculation. If I did, I would probably take a little "flyer" on GE.

-- Jack Krupansky

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