Recent Sell: General Electric Company

ID-100266200-300x250 Recent Sell: General Electric Company

So, unfortunately, this will be my second sale post of the year. It also looks like it will be my last stock sale of the year. The reason why it looks that way is that most of the companies that I invest in has already increased their dividend or they look like they are going to announce an increase soon.

I completely sold out of my position of General Electric Company (GE)

110 shares @ $20.23

General Electric announced a 50% dividend cut from $0.24 a share to $0.12 a share.

Even though GE reported earnings of $0.29 for the third quarter, which still covered their dividend of $0.24, GE management decided to cut the dividend. Like I mentioned above. This is only my second investment sale of the year and it looks to be my last. I only sell a stock once I hear that management reduced its dividend.

Fortunately for me, I was able to redeploy the capital to two great companies that are undervalued and will continue to grow its dividend for the foreseeable future.

As you can see from the FastGraph, GE is approaching fair value territory. However, I do not plan to buy GE anytime soon because of the fact that the company has cut the dividend payout twice in a 10-year timeframe.

Screen-Shot-2017-11-19-at-6.19.28-PM Recent Sell: General Electric Company

Stay tuned for my next posts where I talk about my 3 sperate stock buys.

Thanks for reading and don’t forget to follow me!

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Image by Stuart Miles at FreeDigitalPhotos.net

Comments

  1. I’m sticking with my GE and may add more as the price remains in the teens. I have held IR, WFC, GE through dividend cuts and used the negative sentiment to keep adding to my position. I’m not against selling stocks, I just am very reluctant to do so. Thanks for sharing.

  2. I think I’m going to wait for the dust to settle and then double-down. It appears they will be selling and/or spinning business lines and the potential spins have my interest. I’m assuming with new leadership any spin would be more shareholder friendly than the last one. But then, I may be dreaming.

  3. Hi, I also suffered from the dividend cut, but I am still convinced that GE will make the turnaround so I will keep my shares. But I can also understand your decision, the cut was quite a disapointment.

    Cheers
    Andy

  4. Seems like there are 2 schools of thought that have evolved around GE. 1) one school thinks the company has a strong history and good prospects going forward under new management and 2)the other school feels they have lost their way over the past 20 years and are to big and complex to right the ship. Only time will tell. Tom

    • Good question Paul. Unfurtnally I have not. I am looking forward to when that does happen. It will allow me to buy great companies that are overvalued right now.I started investing in August 2013, so it has been a bull market the whole time of my investment life.

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