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.

GE could have prospered, or at least better prevailed, through 2008 and 2009 if it … Read the rest of this article!

The Robert Wood Johnson Foundation’s Liquidation of Johnson & Johnson Stock

In 1982, the former CEO and heir to Johnson & Johnson gifted a massive block of Johnson & Johnson to fund the Robert Wood Johnson Foundation. The Foundation is a charity dedicated to providing grants that serve the purpose of “encouraging healthy living.” The charity was initially endowed with $560 million in nothing but Johnson & Johnson stock. 

When Wall Street saw this singular investment, the pitch was easy to make. It is really easy to approach the trustees and say, “Gee, that’s awfully risky having all that money in just one stock. Sure would be a shame if something happened to it. Why don’t you let us give you a hand and manage some of that endowment, for a friendly fee of course.” 

The trustees of the Robert Wood Johnson Foundation agreed, and over the past forty years, the net assets of the foundation have reduced the holdings in … Read the rest of this article!