Dividend Stock Wednesday: General Electric (GE)
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This is an analysis completed by The Dividend Guy. It is not to be used as investment advice or a recommendation to buy, hold, or sell any stocks discussed. Please ensure you complete your own analysis.
Given that GE has been one of the few stocks that has not had dramatic drops in the past few weeks, I thought it would be good to have a look at this massive company.
The Company: General Electric Co. (GE-NYSE)
General Electric is one of the largest and most diversified industrial corporations in the world. GE is engaged in developing, manufacturing and marketing a wide variety of products for the generation, transmission, distribution, control and utilization of electricity. Some of GE’s products include major appliances; lighting products; industrial automation products; medical diagnostic imaging equipment; motors; electrical distribution and control equipment; locomotives; power generation and delivery products.
| Yes | |
| Yes |
THE FUNDAMENTALS
Revenue
Click to EnlargeRevenue Scoring
| Criteria | Scoring |
| Consistenly Up with No Down Years | 1.0 |
| Up Trend with < 2 Down Years | 0.5 |
| Choppy with > 2 Down Years | 0.0 |
| My Revenue Score | 0.5 |
Earnings Per Share
Click to EnlargeEarnings Per Share Scoring
| Criteria | Scoring |
| Consistenly Up with No Down Years | 1.0 |
| Up Trend with < 2 Down Years | 0.5 |
| Choppy with > 2 Down Years | 0.0 |
| My EPS Score | 0.5 |
TOTAL FUNDAMENTALS SCORE: 1.0
THE RATIOS
Return on Equity
Click to EnlargeReturn on Equity Scoring
| Criteria | Scoring |
| Above 15% for Last 5 Years | 1.0 |
| At Least One Year Below 15% in Last 5 Years | 0.0 |
| My ROE Score | 1.0 |
Other Ratios
| Ratio | Criteria | Value | Score (Pass=1 / Fail = 0) |
| Debt to Equity | < 0.50 | 3.86 | 0.0 |
| Payout Ratio | < 60% | 50% | 1.0 |
| Credit Rating | > BBB+ | AAA | 1.0 |
| Total Ratio Score | 2.0 |
TOTAL RATIOS SCORE: 3.0
DIVIDEND DATA
Annual Dividends
Click to EnlargeDividend Scoring
| Criteria | Scoring |
| 25+ Years of Dividend Growth | 1.0 |
| 10+ Years of Dividend Growth | 1.0 |
| < 10 Years of Dividend Growth | 1.0 |
| My Dividend Growth Score | 2.0 |
TOTAL DIVIDEND GROWTH SCORE: 2.0
STOCK VALUATION
| Valuation Metric | Criteria | Value | Score (Pass=1 / Fail = 0) |
| Dividend Yield | Cur Yld > 10 Yr Avg Yld | 2.1% | 1.0 |
| Div Yld Compared to SPY Div Yld | Cur Yld > SPY Yld (0.25) | 3.6% | 1.0 |
| P/E Ratio | Cur P/E < 10 Yr Avg P/E (1.0) | 15.9 | 1.0 |
| Relative P/E | Relative P/E < 1.0 | 0.60 | 1.0 |
| Price to Sales | < 1.5 | 2.07 | 0.0 |
| Total Ratio Score | 4.0 |
Canadian Shareowner’s Association Stock Selection Guide Software Buy Price
| Buy Zone |
Maybe Zone |
Sell Zone |
Current Price | Rating | Scoring (Buy=1.0, Other=0.0) |
| 1.0 |
TOTAL STOCK VALUATION SCORE: 5.0
SUMMARY
Points Earned:
11 out of 14
The stock is rated HIGH with 11 points earned through my analysis of the stock. As I currently own GE and am not looking to add to my portfolio at this time, I am goind to do nothing. However, I would be open to adding to my portfolio if my asset allocation called for more U.S. equity.
| Rating | Points Required |
| High | 11+ points |
| Medium | 8-10 points |
| Low | < 8 points |
Reminder: This is an analysis completed by The Dividend Guy. It is not to be used as investment advice or a recommendation to buy, hold, or sell any stocks discussed. Please ensure you complete your own analysis.
The Dividend Guy owns shares in General Electric (GE)
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12 Comments on this post
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Dividendgrowth said:
I think that GE is a great company if you are investing for dividends. With its dividend growth rate of 8.75% over the past 5 years your dividend income has defintely risen more than inflation.
January 23rd, 2008 at 9:35 am -
Lily said:
I think I just figured out that I’m a closet dividend investor.
Also, it’s reassuring to know (especially in today’s market environment) that my portfolio doesn’t suck, or at least other people hold the same stocks.
January 23rd, 2008 at 11:38 am -
Hugo S Valladares said:
GE is currently involved in financial Investments as I understand it takes part in Banking. Please cxonfirm if such is true, ¿Why it does not is cmmented in this page?
September 15th, 2008 at 4:54 pm -
Hugo S Valladares said:
GE is currently involved in financial Investments as I understand it takes part in Banking. Please cxonfirm if such is true, ¿Why it does not is commented in this page?
September 15th, 2008 at 4:55 pm -
Pat said:
Is GE headed to bankruptcy or close to it ?????
November 12th, 2008 at 7:34 pm -
ricky said:
No GE will beat the market over the next few years people will look back and say why didn’t i buy GE when it was so low
November 16th, 2008 at 1:47 am -
ricky said:
heading for $25.00 within the next few months get on the train before it is to late..
November 16th, 2008 at 1:49 am -
G-man said:
anyone heard about GE /PHH merger resurfacing? Can they do that now with liquidity issues still haunting both? GE Fleet has some big internal announcement coming in early Dec.
November 19th, 2008 at 9:37 am -
joe Negri said:
There is much too much speculation regarding the future of GE
….. some good and some bad … It does not make for a comfortable
situation … I don’t know whether to hold or fold …January 22nd, 2012 at 6:13 pm
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