Less than two hours ago, General Electric (GE) announced that it has raised its dividend to 14 cents a share, an increase of 17% from the 12 percent it had been offering.
GE CEO Jeff Immelt said “We are able to increase the GE dividend for the second time this year because of continued strong cash generation, accelerated recovery at GE Capital and solid underlying performance in our Industrial businesses through year-end 2010.”
This news definitely helped GE shares break out above resistance. One can expect GE shares to test the 52-week high of 19.70 in the not-so-far future. Bullish investors can keep an eye on its price action and may go long GE shares with stop loss below the breakout price of 17.50 or so.
– DevTrade (Full Disclosure: Long GE calls at the time of writing)