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+--- Thread: GE, What would you have done (did do)? (/showthread.php?tid=208)
GE, What would you have done (did do)? - cannew - 09-25-2013
GE is one of the original Dow companies and has paid and raised its dividend regularly.
Recent Stock Splits 1983, 1987, 1994, 1997, & 2000,
2003-2008 Ave Price $35.00. Mar 2009 price $7.09. Current price $24.23
GE increased it’s dividend on average 8% per yr.
Div on Feb 2009 was 0.31, by Jun 2009 0.10 a 67% cut. Now it’s 0.19.
Lets say between 2003\2008 you bought it 5 times @$31, $32, $33, $34 & $35. Investing $1,000 each time, total $5,000 with 151.79 shares:
What would you have done (did do) if you had owned GE?
1. Sold your shares,
2. Hung on to ride it out, or
3. Had the courage to buy more shares after it dropped?
RE: GE, What would you have done (did do)? - ronn38 - 09-25-2013
Not holding GE, I suspect I would have would have sold after the price cut. Freeze on Div's don't spooke me as much as cuts.
But, since I don't and didn't hold GE, it's hypothetical.
Ronn
RE: GE, What would you have done (did do)? - hendi_alex - 09-25-2013
I love GE as a relatively safe covered call play. Am holding 1000 shares all covering calls. Current shares were bought at an average price of $22.69. Calls are dated Jan and Mar. The $22's, $23's, and 24's are all in the money, but will probably not get exercised before at least another dividend. The shares kick out $190 per quarter and the calls brought in $1200, juicing the cash flow considerably. Am counting on two or three more dividends hitting the pot before shares get called. I'll likely buy another few hundred shares of GE on any meaningful price retreat, and will immediately sell slightly out of the money longer dated calls.
INTC is another favorite covered call play, with much more lucrative call prices.
RE: GE, What would you have done (did do)? - fiveoh - 09-25-2013
As soon as a dividend gets frozen or cut, I'm out.
RE: GE, What would you have done (did do)? - ChadR - 09-25-2013
Didn't own before the dividend cut, but I loaded up on it after the cut. Not sure if I would have sold it all if I owned it before the cut. Though knowing how I am now, I probably would have sold position and not sure when I would have reinvested back into GE. Though I love the company now at its current price. Will buy more, just not sure when I will be increasing my position.