GE slashes dividend amid falling stock

ERIE, Pa. -- General Electric has only cut its dividend twice. It happened toward the end of the Great Depression (1939) and the Great Recession (2009).

The company’s CEO, John Flannery, announced that effective December, quarterly dividend stock will drop from 24 cents to 12 cents.

With uncertainty about GE’s future, the stock price closed at $19.02 on Monday afternoon. That is the lowest price since 2012.

"It's been three to four weeks, now,  that I got wind of the stocks that were going to take a hit,” said Bob Lucas, an employee of GE Transportation’s Lawrence Park plant.

Observing the trend with GE stock, he recently took a drastic measure.

"I actually called Fidelity and I sold all of my GE stock.”

Roland Kljunich, president of Roland Financial Wealth Management, said, "If you're currently someone that's close to retiring or if you are heavily invested in the GE stock, I'd recommend that you diversify enough, so that basically you make sure that you don't have all your eggs in one basket."

He recommends that investors ask themselves several questions--as well as seeking professional advice--before making a decision.

"Where did I buy the stock? What was the cost of the stock when I purchased it? And where is it today?"

Lucas believes he mitigated his financial loss.

"We got fair warning that the stock was going to plummet, which it has been,” he said. “And yeah, I did take a big hit on the stock while I was still in it. And hopefully, I've got time to recuperate from that."

Kljunich said the changes at GE have been evident for years.

"We've kind of seen the writing on the wall. It's unfortunate because so many people, so many families in this area have really kept the economy going from working at GE."
 


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