Best Stock to Buy Right Now For Dividends

1
(No Transcript)
2
Welcome to Dividend Stocks Research Your premier
site for Rankings and Reviews of the best
dividends stocks around. For more info on
dividend stocks please visit our website
DividendStocksResearch.com
3

• Hi, My name is Aaron and Im with Dividend Stocks
  Research, today were reviewing our recently
  published article

4
The Best Stock to Buy Right Now For Dividends
5
Santa Claus just showed up early for dividend
stock investors. Big changes at GE GE mean the
dividend investing landscape has changed in a big
way.
6
Whats up? Ive been disgusted with GE for years.
And Im hardly alone. When GE was trapped in the
wreckage of a financial house of cards that
tumbled down in 2008, shareholders paid the price.
7
A company founded by Thomas Edison with a history
of paying dividends every quarter since 1899 cut
the dividend in 2009.
8
The General Electric dividend was slashed by 68.
It shrank from 31 cents to 10 cents, so the
company could get back 9 billion a yearfrom
shareholders to cover its bills.
9
Because of all the fancy financial shenanigans it
wove through the murky banking and lending units
at GE Capital, General Electric couldnt plow
through the downturn of 2008.
10
For the past 7 years, its been trying to figure
out what to do. Now, GE is making big changes.
11
Its getting out of the finance business, and
focusing on its core, industrial business. CEO
Jeffrey Immelt calls these changes a historic
pivot.
12
Reason 1 Why GE Is The Best Stock To Buy Now For
Dividends
13
GE is finally shoving a very expensive elephant
out of the room. Its unloading most assets of
GE Capital and picking up 26.5 billion.
14
Buyers include outfits like Blackstone BX and
Wells Fargo WFC. It has letters of intent from
other firms ready to pony up another 4
billion. Whats the big deal about dumping these
business units?
15
Finance is a lousy business to be in. Its
getting tougher and tougher to make money. GE
CEO Jeffrey Immelt admits it...
16
The business model for large, wholesale-funded
financial companies has changed, making it
increasingly difficult to generate acceptable
returns going forward.
17
This one strategic move makes GE one of todays
top stocks to buy. Actually, the top stock to
buy.
18
Reason 2 Why GE Is The Best Stock To Buy Now For
Dividends
19
GE wont behave like a drunken sailor in port
with its newfound bundle of cash. The dividend
wont go up right away. It will stay the same,
23c a quarter, 92c a year, for the next year or
so.
20
The reason why money from the sale of the real
estate and financial assets doesnt start rolling
in right away. GE starts to collect the big
payments in 2016. Thats when the party gets
rolling.
21
GE will reward investors with 90 billion by 2018
through share buybacks and dividends. The key
question is how much of this windfall goes to pay
dividends.
22
Based on what weve been told, roughly 50
million. Share buybacks are fine, but when
youre a dividend growth investor, payments are
better. We can measure the value of a dividend.
Its income... cash on the barrelhead.
23
The share buyback is probably a good thing, but
tougher to measure. When the number of
outstanding shares goes down, the relative
ownership stake of each shareholder goes up.
24
Fewer shares mean dividends are paid to fewer
people, which theoretically increases the
dividend. But thats theory. It doesnt always
work out that way.
25
But in the context of the ugliness GE has been
slogging through, 90 billion in dividends and
share buybacks by 2018 is a beautiful thing.
26
Reason 3 Why GE Is The Best Stock To Buy Now For
Dividends
27
GE is turning itself into a better company. It
will focus on an important collection of business
units that can deliver solid revenue and good
profit margins.
28
Businesses like aviation, energy management,
healthcare, industrial solutions, and power
distribution.
29
GE builds railroad locomotives, thermal power
storage systems, monitoring and diagnostic
services for the energy industry, and commercial
lighting systems.
30
Its strange to think about GE without NBC, which
it spun off in two different deals over the past
few years. And its strange to think about the
company without most of GE Capital, which has
been around forever.
31
But the new slimmed down GE looks terrific.This
renewed focus lets GE play to its strengths in
the so-called Infrastructure Industries. The
firm has a good foothold in growth markets around
the world, and should do well if it sticks to its
knitting.
32
Reason 4 Why GE Is The Best Stock To Buy Now For
Dividends
33
Focus wins. GE is hammering the last few nails
into the coffin of a conglomerate.
34
History tells us this is a smart move. Big
companies that are cobbled together by buying
other companies in different businesses dont
usually have happy endings.
35
We saw this in the 1960s and 1970s with
conglomerates likeITT Corporation, Litton
Industries, Textron, Teledyne, GulfWestern, and
Transamerica. Their wheels came off.
36
The only meaningful exception to the rule of the
unruly conglomerate is Warren Buffets Berkshire
Hathaway BRK-A. And the leadership of Jeffrey
Immelt at GE has revealed that hes no Warren
Buffet.
37
Anything About GE You Should Worry About?
38
Sure. You dont want to ignore the fact that
over the past 10 years, GE stock is down 20
while the Dow is up 73.
39
On one hand, youre avoiding the problem of
buying a stock thats expensive, and perhaps
peaking. You dont have to worry about buying at
the top. On the other hand, GE has something to
prove.
40
Just because its unloading a problem doesnt
mean everything automatically falls into place
with its industrial operations. GE needs to make
sure its focus on the core industrial business is
aimed in the right direction.
41
In 2014, these industrial operations pitched in
58 of GEs earnings. GE says this needs to go
up to 90 in the next 2 years.
42
And getting out of the finance business wont be
cheap. It comes with a pricetag pegged at 23
billion, along with a tax bill of 6 billion.
43
If these numbers are low, the amount of money
available to pay the dividend could be driven
down. And GEs tax bills will go up. A bunch of
tax breaks the financial businesses have been
able to provide go away.
44
Dont be surprised if GEs tax rate doubles. But
by and large, GE is making a smart move. And
smart dividend investors can pick it up at a nice
price.
45
Youll see that the stock has backed off the
recent high it hit the day it unveiled its
changes...
46

47
Its nice to see GE back in the spotlight. I
figure it will be Americas 1 dividend stock for
awhile. Its a perfect companion to my Three Best
Dividend Stocks for 2015.
48
And if youre one of those long suffering GE
investors who held on after the fall from glory
in 2009, looks like youre finally in for some
well-earned redemption.
49

• Want More from Dividend Stocks Research?
• Follow us on Social Media

50

• Want more FREE information on dividend stocks?
• DividendStocksResearch.com

Get Your FREE Report Now
51
READ THIS FREE REPORT!
What You MUST Do to Never Run Out of MONEY in
Retirement!
CLICK HERE