I also think that GE is a great value below $10, even though risks remain.
However, I think one should not assume any slashed dividend will being reinstated, as historically, when companies have slashed dividends, it has taken decades for them to slowly raise them back to their former level, even in nominal terms. In real, inflation adjusted terms, it could take a generation, if ever. The historic trend has been slashing by 50%-80% in bad times, then increasing by a paltry few % in good times.
On Apr 21 10:58 AM sthpawil wrote:
> I consider buying GE back when it was below $7 an incredibly smart > move on my part. In a few years when the dividend returns to its > normal level, the ROI will be huge since my cost basis is so low. > Between that and my capital gains, I don't see how anyone with an > ounce of common sense can make the argument that one should avoid > these stocks. Articles like this are very short sited and proof that > so called "experts" are people too and they make mistakes just like > the rest of us.
Dividend Stocks to Avoid [View article]
However, I think one should not assume any slashed dividend will being reinstated, as historically, when companies have slashed dividends, it has taken decades for them to slowly raise them back to their former level, even in nominal terms. In real, inflation adjusted terms, it could take a generation, if ever. The historic trend has been slashing by 50%-80% in bad times, then increasing by a paltry few % in good times.
On Apr 21 10:58 AM sthpawil wrote:
> I consider buying GE back when it was below $7 an incredibly smart
> move on my part. In a few years when the dividend returns to its
> normal level, the ROI will be huge since my cost basis is so low.
> Between that and my capital gains, I don't see how anyone with an
> ounce of common sense can make the argument that one should avoid
> these stocks. Articles like this are very short sited and proof that
> so called "experts" are people too and they make mistakes just like
> the rest of us.