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How Have General Electric’s Dividends Varied over the Years?

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4Q16 dividend

On December 9, 2016, General Electric (GE), an industrial conglomerate, announced a 4% rise in its quarterly cash dividend to $0.24 per share from $0.23 per share. 

The company’s regular quarterly dividend will be payable on January 25, 2017, to shareholders of record at the close of business on December 27, 2016.

Notably, General Electric raised its dividend per share to $0.23 in 4Q14 from $0.22 in 3Q14. GE has around 8.8 billion common shares outstanding. With a payment of $0.24 per share, its 4Q16 cash dividends will amount to ~$2.1 billion.

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Management’s thoughts

GE’s CEO and chair, Jeff Immelt, said, “GE has continued to deliver for our shareholders in 2016. We have a disciplined capital allocation strategy with a plan to return approximately $30 billion of cash to shareholders this year. This dividend increase is in line with our multi-year capital allocation framework to have a dividend payout ratio of 45-50% and then grow the dividend in line with earnings. We are positioned for long-term transformational growth across our Digital Industrial businesses.”

ETF investments      

General Electric (GE) is included in the portfolio holdings of 105 ETFs. The company makes up 12% and 10% of the iShares Edge MSCI Multifactor Industrials ETF (INDF) and the Industrial Select Sector SPDR ETF (XLI), respectively. Other industrial bigwigs included in XLI in order of holdings are 3M Company (MMM), Boeing (BA), and Honeywell International (HON).

In the next article, we’ll gauge the strength of GE’s free cash flow to support its dividends.

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