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Why GE Will Increase Its Dividend

By Brendan Byrnes – Updated Apr 7, 2017 at 4:35PM

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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 news that many GE investors have been waiting for: GE Capital will again distribute a dividend to parent General Electric. There will be both a regular quarterly dividend of roughly 30% of GE Capital's earnings and a one-time $4.5 billion dividend to the parent company this year. This will improve GE's already strong cash position, and it's likely to lead to further dividend increases from GE as well as share repurchases, depending on market conditions. Overall, it was very good news for GE investors, and the stock rose nearly 4% on the day.

Considering GE gets about 20% of its revenue from Europe, many investors may be nervous about investing in such an internationally focused company -- 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 we invite you to click here to get your copy today!

Brendan Byrnes owns shares of United Technologies. The Motley Fool has no positions in the stocks mentioned above. Motley Fool newsletter services recommend 3M. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Stocks Mentioned

General Electric Stock Quote
General Electric
GE
$86.88 (1.90%) $1.62
Raytheon Technologies Stock Quote
Raytheon Technologies
RTX
$101.01 (1.52%) $1.51
Honeywell International Stock Quote
Honeywell International
HON
$219.08 (0.78%) $1.69
3m Stock Quote
3m
MMM
$126.99 (0.79%) $1.00

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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