Is it safe to invest in General Electric (GE)?
Unfortunately at the Part Time Investor GE no longer meets my Value Investing strategy or Dogs of the Dow strategy.
It was recently announced that GE is slashing their dividend to $0.01 per share and are restructuring their Power Division into two units. This is after being dropped from the Dow back in June. Furthermore their good will write off of their Power Division losses is also being probed by the SEC.
GE no longer:
- Is a top ten dividend payer or part of the Dow Jones Industrial Average
- Has a P/E of 15 or less (as of this writing it’s EPS is negative)
While I hope the new CEO Larry Culp turns things around any investment now is pure speculation.