Do you own the next GE? I’m talking about five dividends that are not as sacred as their shareholders mistakenly believe. We’ll review them in a minute.
First, the warning signs. Many investors were kicked in the gut by General Electric (GE) last year, no thanks to pundits who ignored numerous red flags and encouraged people to buy GE and its historically generous yield. Sure, 5% isn’t “high,” but in a sleepy industrial like General Electric, that’s certainly attractive at a glance.
It also was downright dangerous.
Anyone keeping tabs on the all-important payout ratios for General Electric’s dividend had to see the writing on the wall.…