I was starting to look at venerable blue chip stocks trading at historic lows that had yields practically equivalent to their P/E ratios and I couldn't ignore General Electric. While GE has virtually transformed itself from a manufacturing industrial into a Financial company over the past several years, it's much more diversified than some of the conventional banks and brokerages that are hemorrhaging cash. At today's share price, it was yielding over 8% on a day when management just reaffirmed the strength of the dividend.
So, I bought in today with 200 shares at $14.7 and within hours, was rewarded with a 15% return at the end of the trading day to close at $16.9 with an 8% yield locked in to boot.
Pfizer's the only other company of this size with an 8% yield, but if I had to pick, GE seems less likely to cut given Pfizer's impending pipeline gap.
What other blue chips are out there with obscenely high yields that you're
eyeing up?
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4 COMMENTS HERE
Unfortunately, I still own shares purchased in the 30s and I think GE is heading for single digits. I am coming to the conclusion that all things financial are toxic. GE Capital may become the downfall of this industrial company, Jeff Immelt and perhaps Jack Welch's legacy.
Great buy....I actually had a post on the GE dividend and purchased some as well in the $15 range...Too good to pass up
Today GE became a single digit stock, closing at $9.38. And its dividend will likely be cut this year. Quite a downfall for a once great company.
Yes, I'm still holding as well. Hedged with some gold and 3x short financials, but in GE specifically, getting clobbered.
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