Published Wed, 11 Jan 2017 01:01:00 -0500 on Seeking Alpha
General Electric (NYSE: GE) currently offers income investors a safe long-term investment. The transformation of the company into an industrial pure-play powerhouse is essentially complete. The company has a fortress balance sheet and solid cash flow. Furthermore, General Electric is a solid dividend payer. The company has increased the dividend 100% over the past five years. Today, the company has committed to return billions more to shareholders by 2018. While performing further due diligence, I have uncovered a unique dividend growth buying opportunity in the stock. In the following article I make the case General Electric is now a solid dividend growth buying opportunity.
Unique Dividend Growth opportunity
General Electric stated last year that the company would be freezing the dividend for 2017, yet increased it by one cent in the last quarter. I see that as a sign the company may surprise investors and increase the dividend during 2017, maybe even give some sort of special onetime dividend payout. Jeff Immelt stated on the last conference call:
"In addition, we should receive a $4 billion dividend from GE Capital. So for the year, we expect free cash flow plus dispositions to be more than $32 billion above our goal. As I noted earlier, we continue to invest in long-term growth and competitiveness and with the improved outlook on CFOA, we plan to boost our buyback by $4 billion to $22 billion with a total cash return... Read more