General Electric cut its dividend for First Time Since 1938

[Quotealex]

Didn't GE say they would NOT cut the dividend on several occasions! And now this:

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Bloomberg News
Saturday, February 28, 2009

General Electric cut its dividend yesterday for the first time since 1938 as the global recession and credit crunch sapped profit at its finance unit and threatened the company's AAA credit rating.

The quarterly dividend was lowered 68 percent, to 10 cents a share from 31 cents for this year's second half, the company said in a statement. The reduction will save GE, which has paid a dividend for 110 years, about $9 billion a year, the company said.

Moody's Investors Service said after yesterday's dividend cut that it will keep GE on review for a possible debt downgrade from Aaa, its highest level. Standard & Poor's also kept GE's top-notch AAA and "negative" outlook unchanged.

Shares of GE, the world's biggest provider of aircraft leasing, jet engines, power-plant turbines, medical imaging machines and locomotives, fell 59 cents to close at $8.51. The stock has dropped 75 percent in 12 months.

In a statement, chief executive Jeffrey R. Immelt said the dividend cut is "the right precautionary action at this time to further strengthen our company for the long-term, while still providing an attractive dividend."

Immelt also said that, aided by the dividend change, GE doesn't have any plans to raise additional equity. GE raised $15 billion in October from the sale of $3 billion in preferred stock to Warren E. Buffett's Berkshire Hathaway and $12 billion in common stock.

http://www.washingtonpost.com/wp-dyn...022702894.html
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[GAMEFINEST]

well thats great