General Electric Company (NYSE:GE) stock is about as boring a stock as you can get. But as I usually mention, in the world of dividend investing, boring is good. A pick like GE stock will keep your blood pressure down, as it nicely rewards investors over time. GE stock is a potentially worthy addition to any investor’s portfolio.
General Electric’s strength comes in the number of economic sectors in which the company operates. The company’s business segments consist of appliances, power and water, oil and gas, energy management, aviation, healthcare, transportation, medical devices, pharmaceuticals, automotive, software development, and engineering industries.
With such a diverse range of businesses, GE stock is built to last, able to withstand any hits to a particular segment. The financial crisis hit its GE Capital business hard, but at the end of the day, GE was still standing, while many financial institutions crumbled (General Electric has since sold off GE Capital, though).
GE stock has paid dividends to shareholders since 1899 and at one point, the company had increased those dividends every year for 32 straight years. But when the financial crisis hit, that streak came to an end. GE still paid out a dividend, but it had to reduce it by more than two-thirds.
After sorting out its finances, GE raised its dividend again in 2010 and has been raising it every year for the last six years. GE stock currently boasts a dividend yield of 3.16% and should reward investors nicely in the years to come.
The Internet of Things
When you think of companies that are getting in on the growing “Internet of Things” (IoT) market, General Electric is probably the last company you would think of. However, GE CEO Jeffrey Immelt is pushing the company toward digitization.
Immelt is looking to utilize analytics and the wealth of data that IoT will bring to boost margins, efficiencies, and customer service. Immelt also said he also plans to use the wealth of data to create new business models and services. (Source: “General Electric Company CEO Shares Plan for the Future,” Bidness Etc., March 1, 2016.)
If Immelt holds true to his word, IoT should pay off nicely for GE and its shareholders.
The Bottom Line on GE Stock
With its diversified business, streak of paying out dividends to shareholders year after year, and its current focus on the future through IoT, General Electric is a stock investors shouldn’t ignore.