Raising its quarterly dividend by 2 cents, General Electric Co. (NYSE:GE) cited a continued strengthening in its financial performance. Shares were up to $16.86 recently, outpacing the broader market, and the conglomerate will now pay shareholders 17 cents a share, up from its prior payout of 15 cents.
Although the payout remains well short of GE’s 31-cent dividend from before the financial crisis and economic downturn, the dividend increase is the company’s fourth in two years, but many companies have been boosting dividends in recent months. They are looking to give cash back to shareholders and boost return for investors shaken by recent market turmoil. However, the increase will cost the company roughly an additional $211.1 million a quarter.
“GE has lately been counting on its industrial businesses to drive results as it pares down its GE Capital financial arm. The company in October posted higher third-quarter earnings and a record backlog of industrial orders, but shrinking profit margins raised questions about the price the company is paying for growth,” according to MarketWatch.
Here’s how General Electric closed the week:
General Electric Co. (NYSE:GE): GE shares recently traded at $16.84, up $0.53, or 3.25%. They have traded in a 52-week range of $14.02 to $21.65. Volume today was 77,675,617 shares versus a 3-month average volume of 70,077,100 shares. The company’s trailing P/E is 12.88, while trailing earnings are $1.31 per share. Get the most recent company news and stock data here >>