May 20, 2012
The following video is part of our "Motley Fool Conversations" series, in which industrials editor/analyst Brendan Byrnes discusses topics around the investing world.
In today's edition, Brendan discusses the bullish case for General Electric. The company has done a great job turning itself around after the financial crisis, and Brendan thinks GE can take advantage of demand with its energy infrastructure segment. GE can also benefit from its GE Capital unit, where it has reduced risk and should continue to perform well with less competitors in the space. It was recently announced that GE Capital will again push up a dividend to the parent company, which will improve its already strong cash position and should lead to a dividend increase and possible share buybacks in the future. Finally, GE's stock is trading for cheap at less than 11 times forward earnings. That's not much to pay for a company sporting a dividend yield of 3.6% and some solid growth prospects.
GE gets about 20% of its revenue from Europe. Many investors are nervous about investing in companies with an international focus, but they shouldn't be. Emerging markets are giving new life to established American companies with deep pockets. As these industry titans look abroad for more sales, they aren't starting with a blank slate -- they're bringing their operational excellence to new markets and thriving. To uncover three of our favorite picks to take advantage of high-growth emerging markets, we invite you to read a copy of our free report: "3 American Companies Set to Dominate the World." The report won't be available forever, so click here to get your copy today!