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How General Electric’s Dividend Yield Stacks Up with Peers

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Sep. 12 2018, Updated 7:32 a.m. ET

GE’s dividend yield

General Electric (GE) was famous for its sustained dividend payments and dividend increases. However, the company lost this status after CEO John Flannery’s decision to trim dividends by 50% in November last year. After the financial crisis, GE witnessed a sharp decline in its dividend yield, which was as high as ~12% during that period. Between March 2010 to September 2017, its dividend yield stayed in the 2.5% to 3.5% range. However, in 2018, the company’s dividend yield has gone up steadily.

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Peer group’s forward dividend yield

The above graph reveals that General Electric still has the highest forward dividend yield of 3.84%. The company’s forward dividend yield went up even after a 50% cut in quarterly dividend per share. This was also due to a ~50% erosion in stock value that the company witnessed last year. GE’s dividend yield is much higher compared to the 2.3% average yield of the peer group companies.

GE is followed by 3M Company (MMM), which has a 2.55% dividend yield. Illinois Tool Works (ITW) remained in the third spot with a yield of 2.37%. Koninklijke Philips NV (PHG) and United Technologies (UTX), respectively, have forward dividend yields of 2.2% and 2.15%. Boeing’s (BA) same metric stood at ~2%. Honeywell International (HON) has the lowest yield of 1.85% among all the major industrial (XLI) companies considered here.

In the next article, we’ll discuss GE’s stock price movement.

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