GE General Electric

[DividendGarden]

Hi, everyone. My new article is posted. GE is not a DGI stock considered by most investors, at least not since it cut it's dividend during the recession. Prior to that cut, it was the poster child of a DGI strategy. Please read my new article on GE and comment. Thanks!

http://seekingalpha.com/article/1744722-...e-of-value

[hendi_alex]

I like GE but for many quarters now have used shares for an overweight ( 8%) covered call play. This is a running play with mixed expiration dates extending out as far as March. In January, if the share price stays relatively steady, I'll likely rebuy called shares, selling calls out to June or July. Call have been adding $1.25-$1.50 per share per six months to the income stream. Effective yield on capital (dividend + call income) is 7%-8% in six months.

At some point I may add a few shares to the long term holdings. With the reduction in GE capital, and GE moving its focus back toward core areas of expertise, I think that renewed growth will continue.