General Electric Stock vs. Market Excess

For the first time since the financial crisis, General Electric (GE) is no longer an undervalued stock. While 2008-2009 marked the worst period for General Electric since The Great Depression–and the end of the company’s seventy-two year streak without a dividend cut is a testament to this–the six years after the crash provided a great extended opportunity to buy one of the top thirty companies in the world at a discounted price.

GE spent almost five years trading in the teens, and even fell to $19.37 on August 24th, 2015 during a brief period of general market panic. It also provided a nice reminder of the value of having some extra cash laying around, as the August 24th opportunity let incoming investors secure a 4.7% dividend yield.

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