General Electric (GE) dividend increase disappoints

General Electric announced a 4 cent increase in its annual dividend, from $0.88 ($0.22/per quarter) to $0.92 ($0.23/quarter). The x-dividend date is December 18th and the pay date is January 26, 2015.

A number of analysts were looking for a bigger increase. The smaller-than-expected rise in the dividend is attributed to the drop in oil prices. GE has made a big bet in energy infrastructure including wind, as well as in more energy efficient transportation such as fuel efficient jet engines and locomotives. Lower oil prices make investments in these items less compelling.

It looks as if it will be some time before GE gets back to the $1.24 annual dividend it paid prior to 2009.

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