Friday, September 12, 2014

Recent Buy - General Electric Co. (GE)

12th September 2014 I Bought 80 shares of GE at $25.87 per share plus commission.



General Electric Company operates as an infrastructure and financial services company worldwide. The company’s Power and Water segment provides gas, steam and aeroderivative turbines, nuclear reactors, generators, combined cycle systems, controls, and related services; wind turbines; and water treatment services and equipment. Its Oil and Gas segment offers surface and subsea drilling and production systems, equipment for floating production platforms, compressors, turbines, turboexpanders, high pressure reactors, industrial power generation, and auxiliary equipment. The company’s Energy Management segment provides electrical distribution and control products, lighting and power panels, switchgears, and circuit breakers; engineering, inspection, mechanical, and emergency services; motor, drives, and control technologies; and plant automation, hardware, software, and embedded computing systems. Its Aviation segment offers jet engines, aerospace systems and equipment, and related replacement parts for military and commercial aircrafts; and maintenance, component repair, and overhaul services. The company’s Healthcare segment offers medical imaging and information technologies, medical diagnostics, and patient monitoring systems; and disease research, drug discovery, and biopharmaceutical manufacturing services, as well as remote diagnostic and repair services. Its Transportation segment provides freight and passenger locomotives; diesel engines for rail, marine, and stationary power applications; railway signaling and communications systems; underground mining equipment; motorized drive systems; information technology solutions; and replacement parts. The company’s Appliances and Lighting segment home appliances and lighting products. Its GE Capital segment offers commercial loans and leases, fleet management, financial programs, credit cards, personal loans, and other financial services. The company was founded in 1892 and is headquartered in Fairfield, Connecticut.


GE is a former Dividend Champion and it has now raised dividends for four consecutive years. General Electric now pays quarterly dividends of $0.22 per share in January, April, July and October.



GE data by GuruFocus.com


GE's earnings per share has moved slowly upward after a big dip in 2009. In 2010, the General Electric Co. paid a dividend of $ 0.46 a year, and last year's $ 0.79. On the couple of past years, the dividend growth rate has been good again and I suppose GE will be able to continue that growth.


Some ratings for GE:

    Yahoo:  Mean Recommendation 2.1, 1y Target Est 29.80
    Reuters: Mean Rating 2.07
    Morningstar:  (***)

My last purchase 80 shares of GE increases €40.46 ($52.45) of expected annual dividend net income, which increases my portfolio projected annual dividend net income to €7647.61 With purchase price $25.87 plus commission my starting yield on cost is 3.40%.

Click here to see my portfolio.

Full Disclosure: Long GE

 

9 comments:

  1. Dividend MantraSeptember 12, 2014 at 10:26 PM

    DH,

    Looks like a solid buy here. I also just bought additional GE shares, adding to my position.

    I think they're in a great position to capitalize on all the moves they've been making over the last few years. However, I'm anxious to start seeing results over the next few years. And not necessarily in terms of stock performance, but business performance. But I do believe we'll see that, which is why I'm invested.

    Glad to be a fellow shareholder!

    Best regards.

    ReplyDelete
  2. Roadmap2RetireSeptember 12, 2014 at 11:35 PM

    Good move, DH. I initiated GE this summer and I think the company has a bright future. I really like where its headed and the new initiatives are salivating. I will be looking into adding more to my position sometime in the near future.

    cheers
    R2R

    ReplyDelete
  3. Income SurferSeptember 13, 2014 at 2:19 AM

    Nice buy DH. While everything looks pricey in this market, I've held GE shares since 2008.....and will continue doing so. If they follow through on their spinoffs and reorg, this could turn into a phenomenal investment. Along the way they have a well covered dividend.....which should continue to grow if for no other reason than because GE's awesome dividend streak ended in the financial crisis. Best of luck
    -Bryan

    ReplyDelete
  4. Dividend DiggerSeptember 13, 2014 at 5:32 AM

    Awesome stuff DH, I am admiring on the 80 shares you purchased! Had i have more capital I would have bought more shares than what i originally had purchased. with that being said I'll with definitely purchase more GE in the future. thank you for sharing.

    Ace

    ReplyDelete
  5. AnonymousSeptember 13, 2014 at 4:43 PM

    HI do you reinvest your dividends ? thank you

    ReplyDelete
  6. ANHASeptember 14, 2014 at 1:21 AM

    Hi have been planning on buying into this one! good solid big, like the aviation part most, there i just going to be more and more airplane's every year, cant fly without engine..

    good buy.
    cheers
    Anha

    ReplyDelete
  7. DavidSeptember 14, 2014 at 6:50 PM

    D Hawk,

    Nice buy! This make us as partners... : p. I did my initial purchased too in early Aug. all the best.

    David

    ReplyDelete
  8. Asset-GrinderSeptember 15, 2014 at 12:14 AM

    One of the great companies in the world. Old and boring yes but its one of those companies that will always make money even 100 years from now.

    ReplyDelete