The General Electric dividend cut …

In the latest issue of Dividend Superstars I said a second-half GE dividend cut was possible. Well, it came sooner than expected. 

The shares are now paying an annual dividend of $0.40 from the previous $1.24 a share. That, desptite previous reassurances from CEO Jeffrey Immelt.

It’s starting to feel like Groundhog Day … another day, and another so-called secure dividend gets slashed.

I’m as frustrated as you are. In this case, I think Immelt is choosing the lesser of two evils … raising cash to try and save the AAA credit rating. Whether the latter will hold is still uncertain.

The shares continue getting hammered, but there is still plenty of real value in this company. Right now,  investors just don’t seem to care.

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