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General Electric: A Unique Dividend Growth Opportunity Presents Itself

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.
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Source: Finviz.com
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