GE Capital to Resume Paying Dividend to General Electric (GE)

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Multinational conglomerate General Electric Company ( GE ) on Wednesday announced its finance arm, GE Capital, will resume its quarterly dividend payout to its parent company.

GE Capital will also pay a $4.5 billion special dividend to General Electric some time this year. CEO Jeff Immelt commented, "With this announcement, GE Capital will return cash to GE beginning this quarter. This action demonstrates the strength of GE Capital and the significant actions taken to strengthen its liquidity, capital, asset quality and profitability."

GE's finance arm traditionally paid a dividend to its parent company, but stopped doing so amid the financial crisis in 2008.

Additionally, GE said depending on market conditions, it could accelerate its current share buyback plan in the near future.

General Electric shares rose 62 cents, or +3.4%, in premarket trading Wednesday.

The Bottom Line
We have been recommending shares of General Electric ( GE ) since Dec.9, 2011, when the stock was trading at $16.80. The company has a 3.70% dividend yield, based on last night's closing stock price of $18.40.

General Electric Company ( GE ) is a "Recommended" dividend stock, holding a Dividend.com DARS™ Rating of 3.5 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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