Here is how it is done. “This CEO will never cut the dividend” Dow Chemical (DOW) CEO Andrew Liveris after Q3 results were released.
Rather than Immelt saying anything, GE released the following today:
* GE has paid a dividend each quarter for more than 100 years.
* On Sept. 25, GE stated that its Board of Directors had approved management’s plan to maintain GE’s quarterly dividend of $0.31 per share, totaling $1.24 per share annually, through the end of 2009. That plan is unchanged.
* GE expects cash flow to be greater than the amount needed to fund the dividend in 2009.
* GE has taken a number of steps to strengthen its liquidity plan, including participation in the U.S. Government’s Commercial Paper Funding Facility (CPFF) and FDIC’s Temporary Loan Guarantee Program (TLGP). Both of these government programs provide additional levels of security for our investors, strengthen our ability to support the planned dividend in 2009, and do not place any restrictions on our dividend policy.
Yeah, we know all that. I want to hear it out of Immelt’s mouth. He needs to stand up in front of investors (not literally) and declare the dividend safe.
Until he does, doubts will remain..
PS. Nice job on the stock purchase Mr. Immelt
Disclosure (“none” means no position):Long GE, Dow
Visit the ValuePlays Bookstore for Great Investing Books