GE’s board reduces dividend

February 27, 2009

In keeping with GE’s fundamental priority to keep the company safe and secure in the current environment, GE’s board of directors today voted to reduce the company’s quarterly dividend. “We recognize the importance of the dividend to our shareholders and the significance of this decision, but we believe it is the right precautionary action at this time to further strengthen our company for the long-term, while still providing an attractive dividend,” GE Chairman and CEO Jeff Immelt said.

* Read GE’s statement on the decision

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Robert M. Libby

I just received a letter from Ge dated February 20th where Jeff states they will pay the current dividend for the 1st half and evaluate it for 2nd half of year. How can he come out 7 days later and now say it will be cut to 10 Cents per share that Quick? It is now time if GE cares about retirees to quickly increase pension amounts from the vast pension reserves. That money really belongs to retired Ge employees, not current ones. Time to be Honest Jeff
Rick

Sad…very sad..Retired in 2003 after 30 proud years with the "General"…now reduced to a "Private". I would love to buy more GE Stock..but there seems to be no bottom. Down oner 10% just today. At this rate of decline, the stock will be at ZERO by the end of next week. Why the SILENCE from "management"?
Never thought I would see the day
JoJo

Jeff needs to step down! It’s not the economy that got GE stock to $7.60 it’s MANAGEMENT. They made high risk decisions that is biting GE in the A$$ now.

Way too may lies from Jeff I. and Keith S. Why would Keith S. would exclude GE Appliances from the 3rd Qtr results? and why would Keith S. exclude GECC from 4th Qtr 2008 results? Keith S. can you please answer my questions?

Yes, "MAN" 2009 will be a year to remember at GE Capital!!! Return your bonus just like Jeff I did…Shame on YOU "MAN"!!!
ZERO

To Rick:

Congratulations on your 30 golden years at GE! GE was a good company with great products many years ago. I was able to reach 9 1/2 years of service until the lay off in Jan. 09. I agree with you…by the end of next week GE stock will reach ZERO…I will invest in GE once it reaches $.99 !

I’m glad I didn’t invest my MILLIONS in GE stock!
Rick

Are our pensions going to be safe?
Daroo

If GE Capital is the core trouble..what arent the GE Capital bosses (eg. Mike Neal and the CRO, CFO) there held accountable ? Where’s accountability ?
Does anybody know if they still fly the corporate jets ?
Jerry M.

Do you people hear me SEVEN dollars
Jerry M.

This is no longer a GE issue, this debacle belongs to Immelt and the board, DO YOU HEAR ME
Jerry M.

NOW .97 CENTS FROM FIVE Do you hear me
Jerry M.

Do you hear the shareholders , you will 4/09 in Orlando
Jerry M.

Do you hear the shareholders selling and selling annd selling this wall paper
ZERO

To Jerry M….

You mean $6.85 not SEVEN Dollars. Why Orlando…why not in FFLD or better yet at GE Capital at 901…to save money???

So much money is wasted at GE….stock is at $6 something and they are meeting in Sunshine Orlando…..someone here needs to wake up fast.
GE stock ?

A good article to read re: GE

Option Traders Boost Bets That GE Will Sink to $2.50 by June

http://www.bloomberg.com/apps/news?pid=20601087&sid=aVtf6fH6MNCo&refer=home
Walt Duda

Since the dividend I have been relying on with my 5,000 shares has been cut, why not put it to good use and buy back shares when they are next to useless, that would only be the true justification for the cuts. That would not only justify what has happened but the end result would be, those of us hanging on would stand a chance to get our savings back eventually. A billion bucks would by a hell of a lot of shares back and make the company stronger, or is that too intelligent a move?
Rapp

Jeff Immelt talks about reputation but he does really nothing to defend it
if these things, which are told on GE are really correct,you must announce to buy back stock, and you must it do now!
if the company is really so strong as Immelt tells us,there could be no better investment than to buy own stock right now!
The Worm has Turned

I wouldnt be too concerned chaps – seen this many times before we are now approaching what we had in late 2007, just the opposite side – Euphoria, the market was well overvalued, now its well oversold, fear is just bottoming (remember Bear markets dont last as long as Bulls but are quicker and hit hard) – hey everyones talking fear, I love it, just like June 2007, people who have never showed an interest in equities before are starting to give me tips, mmmm, time to go!!! the fund managers are accumulating or cashed up waiting for their opportunities which aren’t far off – and I know GE is saving up their cash waiting for buying opportunities too & they are doing everything around the world to save cash, not for survival but for opportunity!!!!
Help

To Dividend Investor, you’ve got it good, I just moved into a pot hole in the middle of the road, have a sheet of metal as a roof, found some old newspaper for pants and shirt and eating the sporting section for lunch.
Chuck R

Yes, GE by cutting your dividend by 68% on the backs of your most loyal shareholders you’ve alienated us all. Instead GE you should have cut the compensation of all your employees. That would have given GE stock a positive pop. Most of us former loyal shareholders were getting much less than an 8% dividend because we bought and held at a much higher price. After the dividend cut we would be getting less than a 2% yield. As the yield is dependent upon the purchase price not the trading price.

Why hold GE for a yield less than 2%?

Loose $31 Billion of market cap to save $9 Billion…That was brilliant. Why not
cut the dividend out completely so the stock can go to zero.

Chuck
Lake Mary FL
GE Employee

Hi Chuck, for what its worth, they have cut the compensation of the employee’s, in Australia all non-agreement leaders in Oz (all leaders basically) are not receiving their regular inflationary rise or performance rises for 2008.
Pigs A(*e

To Mr Dividend Investor, sell calls at the bottom of the market are you out of your mind – We are going to make history in the next year or 18 months, we will have the biggest stella bull run you have ever seen, I’m talking Dow 20k in early 2010, there is a heap of cash heavy corps and funds out there looking for opportunities and they are going to go in heavy, patience use to be how to make money in the markets, but things have changed!!!
Chuck R

Mr. Australian,

The non-payment of a bonus or raise is not a cut. If GE cut all employees pay by 10% GE would not have had to cut the dividend that retired persons were relying on and they wouldn’t have to lay-off employees. A dividend cut of 1/3 would have been more acceptable than the 2/3s cut announced. Instead GE chose to use the $9 Billion from the dividend cut to prop up GE’s stock which is an artificial support. Mr. Immelt’s symbolic salary cut from $9 Million+ to $6 Million plus does not fool anyone. It must be so difficult getting by on only $6 Million plus per year.

So far GE has lost about $31 Billion in market cap since the dividend cut and it will probably get worse.

I respect your position but believe the conditions should be shared by all not stolen from the loyal small shareholders. Especially since Mr. Immelt originally announced the dividend was good for the year.
Windbag

One thing I commend GE on is that it doesnt pump all its assets into intangibles – hey there are plenty of companies out there that do, hands up if you got burnt by the dot com, where were all their assets? Take a look at news corp for eg, intangibles are through the roof, WOW – money out the door if you ask me…..if anyone can say they have a name thats gold its GE, priceless!!!!
Josh

No one trusts Mr. Immelt anymore.

1. He said he wouldn’t cut the dividend and then he did.
2. He said he wouldn’t need more capital and then he did.
3. He said 10% was "in the bag" and then it was not.

The GE Board needs to stand up and do what is right for shareholders.
Squarf, Atlanta, USA

The company has no shame. Shame on the BOD, and all other key execs. Besides, my builder’s special washer and dryer crapped out after 25 years of flawless service… and I got rid of the original (25 year old) refrigerator… and replaced it with a new GE fridge because the company really produces superior appliances. Now if the company merely recruited management that can match the quality of the products! And I do not refer to its financial three-cushion-shot products which can sink the whole corporation! Investors BEWARE OF GE!
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