General Electric Stock: Collect 20-35% Of Your Investment In Dividends By 2019

If you own 100 shares of General Electric, you collect $92 per year in dividends as part of the current terms for owning 100/10,042,192,011 of the business. When your typical investor collects that $92 check, he is probably not thinking about the mind-boggling vastness of the company that generated almost incomprehensible revenue to produce that dividend check.

When GE shareholders rightfully got spooked in 2009, it wasn’t the vastness of the industrial empire that caused the Buffett bailout and first-in-seven-decade dividend cut—it was the fact that $80 billion in revenue was being generated by a poorly capitalized, low-quality real estate and credit card empire whose liquidity was contingent upon rising commercial real estate values and the payment of credit card debt from borrowers that didn’t prioritize their commitments to GE affiliates when times got hard.

Continue Reading!

Staples To Merge With Office Depot: A Buyout With An Ugly Outlook

Office Depot has had an ugly business model for the past two decades. The company has only had one seven year stretch in its corporate existence (2000-2006) in which profits grew. Other than that, the company see-sawed along a trajectory of “two steps forward, three steps back, two steps forward” for most of its existence. Even Home Depot’s glory days, however, had more to do with financial engineering (borrowing debt to reduce the stock count through buybacks) rather than actually growing a healthy business.

Continue Reading!