General Electric's Stock Price Slips But Its Dividend Is Attractive

General Electric (GE) has been on the downside since making a short-term double top at $42.15 on October 2, 2007. And on December 3, 2007 the stock closed at $36.93, down $1.36 (3.55%), after Citi Investment Research analyst Jeffrey T. Spraguea lowered his price target from $48 to $45 on worries that problems in its consumer finance unit would hurt GE's profits.

However, Sprague expects the company to raise its dividend, which would help support the stock price.

Currently GE pays a $1.12 annual dividend for a 3.03 percent dividend yield. And the company has a long record of increasing its dividends (chart), making the stock an excellent choice for a long-term dividend reinvestment program.

Note: I (RAH) own shares of GE.

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Posted December 3, 2007.