GE stock is an American multinational conglomerate. Its headquarters are in Boston, and it was founded in 1892. The company is incorporated in New York state.
General Electric’s industrial businesses
During the second quarter, General Electric (GE) industrial businesses burned through nearly $1 billion in cash. As a result, the company reported an operating loss of $0.13 per share, compared to a profit of $0.31 per share in the same period last year. This result came below Wall Street’s expectation of $0.31 per share. However, the company’s revenue was above expectations.
The company also announced plans to divest non-core financial services assets for at least $100 billion this year. In addition, the company expects to generate positive free cash flow in 2020. It plans to spin off a portion of its remaining Synchrony Financial stake at the start of next year.
As for the broader outlook for the year, GE raised its profit guidance by five cents. It now expects to earn 55 to 65 cents a share. The company also increased its organic revenue growth by mid-single digits. As a result, the company now sees an opportunity to benefit from the power shift generated by fossil fuels.
General Electric’s financial position
GE’s financial position is vital in determining the enterprise’s lifeblood. It can also help investors make the right investment decision.
To get a sense of the company’s overall financial performance, it’s helpful to understand the three sections of the financial statement. The first section, the balance sheet, shows the current balance of the assets and liabilities of the corporation.
The second section, the income statement, reveals how much the company makes and how much it pays to shareholders. The third, the investing activities section, details how the company spends its cash on new assets.
General Electric’s stock has been trading at multi-year lows. This is because the company has lost a lot of money and billions in debt. In addition, its credit rating has been on the decline lately.
The GE above stock buy-back has been going on since 1962. The company’s aviation division is sometimes dubbed the “crown jewel.” Its narrow-body jet engines benefit the company, and it’s expected to save about $500 million to $1 billion in 2020.
GE’s aviation business
GE’s aviation business is one of the largest in the world. It provides avionics, aircraft engines, and components to airlines. The company employs more than 47,000 people worldwide. It is a leader in designing, manufacturing, and servicing airplane engines. It has installed more than 39,000 commercial and over 26,000 military aircraft engines.
The aviation division is expected to boost profitability over the next decade. The segment is the most significant profit-margin contributor to the overall company.
The aviation division will be a separate company in 2023 and will be led by a non-executive chair. The restructuring is subject to approval by the board of directors and the Internal Revenue Service. The restructuring also includes a tax opinion from counsel. The resulting company will be a global leader in designing, manufacturing, and servicing jet engines and mechanical systems for the air transport industry.
The GE Aviation segment generated $5.6 billion in revenues in Q1 of 2022. The part has grown significantly over the past few years. The segment’s profit increased 26.4% QoQ, and the margin is predicted to expand further.
GE’s dividend history
GE’s dividend history is much more complex than the number of shares paid. It includes historical stock price, payout ratio history, and dividend growth rate predictions based on historical data.
GE’s dividend history reveals that its dividend has increased at a rapid rate in recent years. During the last five years, its dividend has grown at an average rate of 15%. However, the dividend yield has fluctuated. The current crop stands at 0.38%, which is about 75% lower than the Industrials sector average of 1.5%.
GE’s dividend history also reveals that the company’s dividend has increased yearly for the past quarter century. The company’s Board of Directors can change its dividend policy.
General Electric’s dividend is set to increase in September 2021. The company has issued four quarterly dividends over the last 12 months.
The company’s dividend is expected to grow slowly over the next five years. For the fiscal year ending in June 2020, GE’s dividend is projected to remain at $0.07 per share.