General Electric Company (GE) May Start Raising Dividends Again In 2011

Bloomberg reports that General Electric Company may start raising dividends again in 2011. GE had cut its dividends last year, the first time since the Great Depression. CFO Keith Sherin said on Tuesday that the company may resume dividend increases in 2011 amid a “snapback” at the company’s financial unit.

“We’d like to grow the dividend in 2011,” said Sherin at conference organized by Goldman Sachs (NYSE: GS). “We’ve got better visibility around financial services. If you think about 2011, we believe we’re going to have GE earnings growth,” he added.

GE, under its CEO Jeffrey Immelt, has been refocusing on its role as a provider of jet engines, power turbines, and medical-imaging equipment. The company has also strated focusing more on emerging markets and research and development.

In February 2009, the company had cut its dividend from $1.24 per share to $0.40 per share as profits took a hit due to the recession and the credit crunch. GE’s earnings saw a 38% fall to $11.2 billion in 2009.

“With the company expected to earn roughly $23 billion over the next two years, and substantial improvement to the leverage ratio at GE Capital, and vastly improved capital market conditions, it seems totally appropriate for GE to re-evaluate its dividend payout ratio,” said Brookfield Investment Management’s Joel Levington.

Shares of GE closed 2.31% higher at $17.69 in trading on Tuesday in New York. Shares were up 1.98% to $18.04 in after-hours trading at 4.30 p.m. in New York.