BOSTON, MASSACHUSETTS—(BUSINESS WIRE)—(BUSINESS WIRE)—(BUSINESS WIRE) GE’s (NYSE: GE) Board of Directors today declared a $0.08 per share dividend on the company’s outstanding common stock. The dividend will be paid on October 25, 2021, to stockholders who were on the books on September 27, 2021. The stock will go ex-dividend on September 24, 2021.
What is GE current dividend?
Since 1989, the dividend payout and yield for General Electric (GE) have been tracked. As of November 26, 2021, the TTM dividend payout for General Electric (GE) is $0.32. The current dividend yield for General Electric is 0.33 percent as of November 26, 2021.
Is GE going to raise its dividend?
In 2008, at the height of its dividend-paying splendor, GE shares paid out $1.24 in yearly dividends (split-adjusted). Since then, it’s never been that high. Its industrial companies generated $19.1 billion in cash flow from operations in that fiscal year (Page 75). Its industrial segment had $16.1 billion in free cash flow (FCF) after subtracting $3 billion in capital expenditures. The four industrial businesses of GE earned $606 million in FCF in 2020, down from $2.3 billion in 2019 and $4.8 billion in 2018.
Its industrial enterprises generated over 27 times the amount of FCF in 2008 as they did in 2020.
The industrial businesses had FCF of -$845 million in the first quarter of 2021, up 62 percent from the previous quarter. That’s still not good, but it’s a lot better than it was last year at this time. CEO Larry Culp commented on the outcome, saying:
“Despite a still difficult climate for aviation, I am happy of the GE team’s strong first-quarter results. With an increase of $1.7 billion in industrial free cash flow year over year, we are strengthening our cash performance and profitability.”
The company also reaffirmed its full-year projection for 2021, predicting that GE Industrial’s FCF will range from $2.5 billion to $4.5 billion. At the low end of their FCF prediction, that’s a 313 percent rise over 2020, and at the high end, it’s a 643 percent increase.
To go back to $1.24 in dividends paid out yearly, GE would need to earn around $10.9 billion in free cash flow (8.8 billion shares outstanding multiplied by $1.24). Obviously, this will not happen in 2021 or even 2022. However, if Culp’s plans gain traction and the company’s FCF continues to increase, it might happen in 2023.
How often are GE dividends paid?
The dividend will be declared in 14 days and paid in two months. The previous General Electric Co. dividend was 8c, which was exempt two months ago and paid one month ago. The dividend cover is roughly 14.7, and there are normally four dividends each year (excluding specials).
Is GE a buy 2020?
General Electric is making headway on its long-term turnaround plan. As the airline sector and the larger economy progressively recover from the epidemic, GE earnings and cash flow are likely to increase further in 2021.
Furthermore, General Electric is about to undergo a major makeover, abandoning its diverse background in order to focus on aviation.
Many Wall Street analysts are optimistic about GE’s present management and improving fundamentals. Others, on the other hand, remain on the sidelines. GE is also a member of a trailing industrial group.
GE stock is currently trading at 115.30, which is a good buy point. However, the stock remains below the entry point, and the RS line is underwhelming.
Buying an index fund, such as SPDR S&P 500 (SPY), would have provided better long-term returns than GE shares. If you’re looking for a large-cap stock to invest in, IBD has a few good suggestions.
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What is the target price for GE stock?
GE’s price target has been set by analysts. In the previous three months, 12 Wall Street analysts have offered 12-month price goals for General Electric. With a high projection of $143.00 and a low estimate of $55.00, the average price goal is $119.92. The average price target is down 29.27 percent from the most recent price of $92.77.
Why is GE stock so cheap?
The General Electric Company (NYSE:GE) is one of the country’s oldest and most well-known corporations. It was formed by Thomas Edison, J.P. Morgan, and other partners in the late 1800s and has since grown to become an international conglomerate. GE stock has been a stunning performer, even before last year’s stock market crisis, despite its heritage and triumphs.
GE has experience in aviation, healthcare, oil, venture capital, and other hard-hit industries to address at least the COVID part. Even experts from founder Morgan’s namesake bank warn it’s a dangerous bet for 2021, citing the difficult year of 2020.
It gained some confidence once the election results were certified, but it still has a long way to go. Let’s turn on the light to see how this once-loved American classic is being left in the dark by investors.
What is happening with GE?
In order to focus more firmly on areas where the business sees development prospects, GE will split into three entities over the next few years. GE will become an aviation corporation focusing on jet engines, and its healthcare and energy operations will be spun off.
Is GE undervalued?
Growth: With a forward PE ratio of just 20.6 over the next four quarters, the S&P 500 seems considerably more reasonable. Although GE’s forward earnings multiple of 26.5 is more realistic, it is still much higher than the S&P 500 as a whole, making the company appear expensive.
GE’s forward PE ratio is also more than double that of its rivals in the industrial sector, which are now trading at 21.3 times ahead earnings.
For organizations that are rapidly expanding their bottom lines, the growth rate is also crucial. The price-to-earnings-to-growth ratio (PEG) is a useful tool for incorporating growth rates into the analysis. The overall PEG of the S&P 500 is at 0.9; GE’s PEG is 0.27, implying that GE is severely undervalued after accounting for its growth.
Another key valuation statistic, particularly for unprofitable companies and growth stocks, is the price-to-sales ratio. The PS ratio of the S&P 500 is currently 3.12, which is substantially above its long-term average of 1.62. The PS ratio of GE is 1.52, which is roughly four times the S&P 500 norm.
Finally, Wall Street analysts believe that GE stock will increase in value during the next 12 months. The average analyst price objective for GE among the 15 analysts tracking the company is $127, implying a 22% increase from present levels.
The Bottom Line: Based on a selection of standard fundamental valuation criteria, GE stock looks to be appropriately priced at its present price.
How much debt does GE have?
Long-term debt is $59.23 billion, and current debt is $4.29 billion, for a total debt of $63.52 billion, according to General Electric’s balance sheet as of July 27, 2021. The company’s net debt is $41.06 billion after accounting for $22.46 billion in cash equivalents.
Let’s define some of the terminology used in the preceding paragraph. The portion of a company’s debt due within a year is called current debt, while the portion due in more than a year is called long-term debt. Cash and liquid securities with maturities of 90 days or less are considered cash equivalents. Current debt plus long-term debt minus cash equivalents equals total debt.
