Ge ceo buy stock directly

Author: kiril_seo On: 13.07.2017

GE announced that its CEO, Jeff Immelt, is stepping down on August 1 and will retire from his role as chairman of the board at the end of Questionable capital allocation decisions, the dividend cut during the financial crisis, the lack of capital returned to shareholders, bureaucracy, and non-GAAP accounting complexities are all reasons why GE has been one of the most unloved stocks in America.

A CEO transition is a big deal.

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Deutsche Bank analyst John Inch published a bearish note on GE shortly after it reported earnings and suggested that the company might have to eventually cut its dividend given the weak cash flow performance. Considering that proceeds from Capital dismantlement and asset sales eventually go away, this high dividend payout would not appear sustainable. Executive leadership changes can sometimes result in major capital allocation changes too, including the amount of dividends paid.

ge ceo buy stock directly

Investors can learn more about Dividend Safety Scores and view their real-time track record here. Starting on the cash flow front, scrutinizing a three-month period of time is a bit short-sighted.

Almost anything can happen in 90 days, especially for a business that manufactures and sells expensive pieces of industrial equipment. The Deutsche Bank alert is totally wrong — the analysis is faulty. The GE dividend is safe.

Jeff Immelt Plunks Down His $2.6 Million Bonus On GE Stock

We clearly stated that the dividend remains a priority — we would prioritize the dividend over buyback. The company made several other comments about its dividend commitment during a recent conference call as well:. So very strong, very committed to the capital allocation choices we have made, especially the dividend and this is the way to think about GE and the strength of the company going forward. Looking at and combined, we can see a picture of flexibility as well.

Service contracts help customers protect their massive investments in mission-critical equipment sold by GE and generate much more predictable revenue. GE has experienced a substantial business transformation in recent years, but the potential of its massive industrial businesses has yet to really be unlocked and appreciated by the market. As a long-term shareholder, I plan to continue holding my shares of GE.

REITs Dividend Ideas Dividend Strategy Dividend News Dividend Quick Picks Editor's Picks. GE CEO Jeff Immelt Steps Down: What Dividend Investors Need To Know Jun.

ge ceo buy stock directly

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