I’m seeing red and buying more GE
As I’m sure all of you are aware, General Electric just announced some restructuring and a 50% dividend cut that has not enthused too many investors. Investors nowadays like to see immediate results. A couple of year delay to see the restructuring play out doesn’t sit well with those of us that want our Amazon delivery shipped to our door in a couple hours.
Prior to the dividend cut, GE was paying me $1206.71 per year. The dividend cut brought that down to $603.35. GE stock price has also been the worst performer in the Dow Jones over the last year. It dropped even further with Flannery’s announcement.
Rather than sell, which seems to be the mantra with many hardcore dividend only investors, I recently picked up some more shares.
On November 14th I bought an additional 150 shares at 18.082 and on November 16th purchased 100 more shares at 18.2256. Altogether, these purchases totaled $4545 and added $120 in annual dividends.
I’m now bringing in $723.35/year in dividends with GE’s new rate. Not too bad. Once I get paid this month I may even look to purchase more.
Did you guys more GE as well? Are you waiting for some more catalysts first? Or, does the dividend cut (second since 2008), completely remove GE from your investment criteria?