Business & Finance
Business and Finance
Business and Finance
Tue, March 22, 2011 GE and 3M Showing Improved Fundamentals -- Dividends Spike
NEW YORK, NY--(Marketwire - March 22, 2011) - With the markets showing signs of volatility this month, investors are once again looking for safe havens. Dividend paying stocks traditionally get plenty of attention during hectic times in the market believing in the company's security and real earnings power. Conglomerates are known for paying steady dividends, however during the financial meltdown most had substantially reduced or altogether cut their dividend payments. While many conglomerates have started boosting dividend payments, others do not appear ready to increase shareholder return. The Bedford Report examines the outlook for companies in the Conglomerates Industry and provides research reports on General Electric Co. (
[ www.bedfordreport.com/2011-03-GE ]
[ www.bedfordreport.com/2011-03-MMM ]
GE pays an annual dividend of 56 cents for a yield of about 2.8 percent. Although the dividend is not even close to pre-recession levels, GE has boosted its dividend in two consecutive quarters. The company's 2009 dividend cut was the company's first in more than 70 years, with CEO Jeffrey Immelt calling it "the toughest decision (he) ever had to make as CEO." GE posted fourth-quarter earnings of $3.9 billion, or 36 cents a share, a 33 percent year-on-year improvement. While executives said little about dividends during the earnings call, GE said its core businesses were improving and that it is continuing to show gains in its financial operations.
The Bedford Report releases regular market updates on the Conglomerates Industry so investors can stay ahead of the crowd and make the best investment decisions to maximize their returns. Take a few minutes to register with us free at [ www.bedfordreport.com ] and get exclusive access to our numerous analyst reports and industry newsletters.
Last month 3M hiked its dividend 5 percent, and now the company pays an annual dividend of $2.20 for a yield of approximately 2.4 percent. The company's board also authorized the repurchase of up to $7 billion of outstanding common shares, replacing its existing share repurchase program.
3M reported that its fourth quarter GAAP net income declined to $928 million, or $1.28 a share, from $935 million, or $1.30, in the year-ago period. The company increased its 2011 earnings estimate to a range of $5.95 to $6.20 per share compared to a prior range of $5.90 to $6.10.
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