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GE Has Huge Turnaround Potential BUT I'd Rather Own This Much Faster Growing Dividend King

Published Mon, 17 Jul 2017 09:09:28 -0400 on Seeking Alpha

General Electric's (GE) venerable history as a Dividend Aristocrat and industrial juggernaut once made it a favorite core holding for many an income investor.
Unfortunately, after the financial crisis revealed that the company's fast growth strategy was built upon a house of cards the company had to go into major turnaround mode.
For the last eight years, Jeffrey Immelt worked to return the company to its industrial roots, selling off vast amounts of non-core holdings, including almost all of GE Capital.
Alas, after 16 years as CEO, Immelt has, in the opinion of many investors, including myself, failed to unlock GE's true potential; GE's 30% decline since 2001 illustrates.
That's why when Immelt recently announced he was retiring from the top spot, to be replaced by John Flannery, the news was met with a great deal of optimism.
However, while I still believe that GE's core business has the POTENTIAL to make it a solid dividend growth investment, Flannery will have a lot to prove.
Which is why I recommend that investors thinking about buying GE consider purchasing Illinois Tool Works (ITW) instead.
That's for several reasons, including the fact that ITW's management has a solid long-term plan in place to deliver double-digit dividend growth, and 12% to 14% total returns for the foreseeable future; returns that GE will likely struggle to match or exceed.
GE Continues To Have Enormous Potential BUT...
Don't get me... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
GENERAL ELECTRIC 17.98   22.5 0.80 0.96 5.27


Older articles featuring General Electric (GE):
General Electric: A High Yield Payout That Can't Be Cut
No, Dividends Aren't Dangerous
GE: Buy, Sell Or Hold? Research Regarding Outcomes Of Dividend Reductions
GE: Don't Think Of A Dividend Cut
GE's Dividend Cut May Not Be Deep Enough
The Alternate Timeline Where GE Finally Cut Its Dividend
Don't Rush To Buy The GE Dividend Cut
Dealing With The 'Problem' Of Owning Overvalued Dividend Growth Stocks
GE Plans to Reduce Quarterly Dividend in Conjunction with Revised Capital Allocation Framework
Why GE Should Completely Eliminate Its Dividend