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.

Now that GE is knocking on the door of $30 per share, the six-year chapter of undervaluation has finally come to a close. … Read the rest of this article!