WebFieldTrip-Unit7

# WebFieldTrip-Unit7 - Therefore the result is 2.7(\$0.31/\$11.33 2 Is this dividend yield what you might expect from an established company like GE No

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Professor and Class, For this week’s Web Field Trip, we were asked to visit General Electric Corporation and examine some records to determine their dividend yield. We were asked to answer the following questions in regard to our visit to GE’s website. 1) What is GE’s dividend yield? To come up with dividend yield, we must take an average of yearly paid dividends, or four quarters. For the last four quarters GE has paid \$0.31 annually per share dividend each quarter. Technically, we time this by 4 to get \$1.24, and then divide by 4 to get the average, which would be \$0.31 again. Then we find the trading price of GE’s stock, which on April 09 th , 2009 was \$11.33. Once we arrive at these two numbers, we divide the average annual dividend (\$0.31) by the current trading stock price (\$11.33).
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Unformatted text preview: Therefore, the result is 2.7% (\$0.31/\$11.33). 2) Is this dividend yield what you might expect from an established company like GE? No, I’d actually expect a higher dividend yield than this 2.7% because they are more of an established company than some others out there, yet others have higher yield dividends than GE. 3) Is GE’s record of paying dividends an attractive feature of its common stock? Why or why not? GE has paid dividends each quarter for over 100 years. I believe this has been an attractive feature to the stockholder’s. If it wasn’t an attractive feature, GE would not have been as successful as it is today. Evidently, paying their stockholder’s regularly has satisfied them, and kept them investing in the company. Wendy Eller...
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## This note was uploaded on 12/08/2009 for the course AC 116 AC 116 taught by Professor Unknown during the Spring '09 term at Kaplan University.

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