- 2004 = $0.80
- 2005 = $0.88
- 2006 = $1.00
- 2007 = $1.12
- 2008 = $1.24 (est.)
This represents a compound annual growth rate of dividends of about 10.5%.
GE also announced a $15B stock repurchase plan, as well as an estimate for 14-18% earnings growth for the fourth quarter of 2007, and at least 10% (quote '10% is in the bag') earnings growth forecast for 2008. GE promises safe and reliable earnings growth as the economy evolves. They also claim that because of their strong, globally positioned business led by infrastructure, they can grow revenues at 10% per year, despite a slowing U.S. economy. This is precisely the reason why I am bullish on GE, as I believe they are no longer a proxy or bell weather for the U.S. economy, but more of a global growth play.
The 10%+ EPS growth forecast disappointed analysts who had beefier earnings growth in mind for the company. The stock got hit right after the announcement, and subsequently recovered to close off 1%. GE also noted that they may sell or seek a partner for their private label credit card business in the U.S.
General Electric is the world's biggest provider of jet engines, power-plant turbines, medical imaging equipment, locomotives, private-label credit cards and aircraft leasing. Other divisions include water treatment, appliances, lighting and real estate.
This marks the 100th post on the moneygardener!