General Electric Company - GE

General Electric Company, stock ticker GE, is a diversified technology and financial services corporation. GE's products and services range from aircraft engines, power generation, water processing, and household appliances to medical imaging, business and consumer financing and industrial products. As of January 28th, 2011 they held a 49 percent interest in a media entity that includes the NBC Universal businesses (click here to learn more about GE's NBC ownership). GE's business segments include energy infrastructure, technology infrastructure, NBC Universal, GE Capital and Home & Business Solutions. Effective January 1, 2011, GE reorganized technology infrastructure segment into three segments: Aviation, Health care and Transportation.
Facts:
- GE traces its beginnings to Thomas A. Edison, who established Edison Electric Light Company in 1878. In 1892, a merger of Edison General Electric Company and Thomson-Houston Electric Company created General Electric Company.
- GE is the only company listed in the Dow Jones Industrial Index today that was also included in the original index in 1896.
- In 2010, GE ranked #1 in health care and #19 overall on Fast Company's list of the world's top 50 most innovative companies.
- In 2010, GE was named in Ethisphere's list of the world's most ethical companies.
- In 2010, GE was named in Business Week's list of the world's 25 most inventive companies.
- In 2010, GE ranked among Fortune magazine's listing of the Most Admired Companies in the World for its 5th consecutive year.
Recent acquisitions:
- On February 1, 2011, acquired Dresser, Inc.
- On February 3, 2011, acquired Wellstream PLC.
- In September 2011, launched a new entity, Research Circle Technology Inc. (RCT).
- In October 2011, the Company's GE Energy Financial Services unit bought a 58% interest in Lightfoot Capital Partners L.P.
I love GE because they are a legendary American company and have been around since my grandfather was a little boy. Yes, that doesn't mean they will be around forever but you would think the Great Depression and Recession would have terminated them by now! Their financials are consistent. GE's stock price was hit hard during the Great Recession and still has not gone back to their historic levels. GE currently pays a 17 cent dividend, which is a 3.73% dividend yield. You can't beat that with a bat!
I believe that if the global market is going into or already in recession (at any level) when it comes out GE will be a front runner. They will continue to pay a good dividend until then and financial side is coming out of the banking issues successfully. GE possesses a strong profile in many different industries. The corporation also has potential growth through its leading position in aspects of alternative energy. A streamlined and downsized GE Capital has vastly improved prospects; the market has especially not taken this into account.
Dividends were recently increased, and a dividend increase seems likely in another year or two. GE Capital is finally coming around and looking much more stable than in 2010 or 2011. 2012 looks outstanding for the GE! It is hard to imagine a scenario where the American economy turns around and GE does not. GE has a decent PE and as previously stated, a growing dividend! Their EPS is expected to double in the next couple years.
Investors are still punishing GE for the sins of the past, however their strong holdings and a strong balance sheet make this a deal at $18.23 (GE share price as of 12/26/11). Upcoming energy efficient releases will continue to drive the top line. I think GE is poised to make a 10 to 15 percent profit year over year for the Common Man investor. Currently with a 3.73% dividend GE is a good wait and see opportunity in the short term. Long term, you will win and reap the benefits of a great decision in 2011.
With room to grow the dividend around 8% a year, I could see GE either doubling or at least hitting $23.00 fair market value in 2012. Please visit GE's website, here, and also their Investor Relations page, here. Check out the videos below to learn more about this classic dividend payer. Don't be afraid to take a chance on a company Reinvest those dividends for maximum gains! I hope you have a great day!