General Electric paid a total dividend of 8,492 million USD last year, for a market capitalization of 262,726 millions.
Dividend per share of General Electric is 0.96 USD, and his stock market price 29.70 USD.
According to the chart, where dividend yield is displayed, General Electric has a dividend yield of 3.23%, which is higher than the amount offered by both the market average and companies from USA. It is also bigger than average of Industrials industry. This high dividend yield might be a sign to worry about the future of the company so deeper analysis is needed.
About the ability of General Electric to maintain his current dividend of USD 0.96 per share, an amount that accounts for 3.23%, we should study its payout ratio both on earnings and on cash-flows (see chart below). General Electric payout on ernings is currently 290.91%, which is higher than the market average, and companies of Industrials industry, which are 40.24% and 35.56% respectively. Both figures show that General Electric can have problems to keep with his present dividend yield.
The payout on earnings should be complemented with the payout on cash flow since it is this latter amount the one which can be distributed to shareholders. Cash flow per share of General Electric is USD 2.25 per share, which is higher than the dividend per share paid by the company of USD 0.96, so the company generates enough cash to maintain his dividend in the future.
The following figure shows payout ratios over earnings and cashflow of General Electric, compared againt world market average, USA companies, Industrials industry and General Industrials sector companies. You might also need to check full financial report of General Electric.
General Dynamics Cp. USA. Industrials.Gemalto NV. Netherlands. Technology.Geely Automobile Hol. China. Consumer Goods.Gecina. France. Financials.Geberit N. Switzerland. Industrials.GEA Group AG. Germany. Industrials.
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