Significantly Leverage Your Position In GE For Free
By Sol Palha:Only individuals who are bullish on General Electric (GE) should consider employing this strategy. If you are not bullish on this stock, then it would be in your interest to look for alternative plays.
Reasons to be bullish on General Electric
GE capital will resume the transfer of funds (in the form of dividends) to its parent company General Electric. GE Capital Now boasts a 10.4% Tier one capital ratio and reported stable Y-O-Y (year over year) profits. GE Capital made a special dividend payment of $4.5 billion to General Electric and is scheduled to follow up with quarterly payments of $475 million every quarter.It announced two acquisitions in the mining industry. It will acquire Australian Industrea, a mining equipment maker for $700 million and privately held Fairchild international.
- It has extremely strong levered free cash flow of $43.3 billion.
- A five year dividend average of 4.10%
- A free