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Immelt Shows GE Has Learned Its Lessons

So GE appears to be ready to trim much more of GE Capital's liquidity risk exposure than previously expected. This is critically important for the company, since its finance unit is now under Federal Reserve supervision as a systemically important non-bank financial company, and will have its dividend payments to the parent company subject to review through the regulator's annual stress tests, beginning in March 2014.

GE declined a request for comment. The company's stock was up 1.5% in premarket trading to $23.45.

More on the Stock

GE in February increased its common share buyback authorization to $35 billion from $25 billion. Immelt has previously said the company's 2013 share repurchases would total about $10 billion. The company last month said that through the second quarter it had "returned $9.9 billion to investors year-to-date through dividends and share buybacks."

General Electric's shares closed at $23.11 Thursday, returning 12% year-to-date, following a 21% return during 2012.

Based on a quarterly payout of 19 cents, the shares have a dividend yield of 3.29%.

The shares trade for 12.7 times the consensus 2014 EPS estimate of $1.82. The consensus 2015 EPS estimate is $2.00.

GE Chart GE data by YCharts

Interested in more on General Electric? See TheStreet Ratings' report card for this stock.

-- Written by Philip van Doorn in Jupiter, Fla.

>Contact by Email.

Philip W. van Doorn is a member of TheStreet's banking and finance team, commenting on industry and regulatory trends. He previously served as the senior analyst for Ratings, responsible for assigning financial strength ratings to banks and savings and loan institutions. Mr. van Doorn previously served as a loan operations officer at Riverside National Bank in Fort Pierce, Fla., and as a credit analyst at the Federal Home Loan Bank of New York, where he monitored banks in New York, New Jersey and Puerto Rico. Mr. van Doorn has additional experience in the mutual fund and computer software industries. He holds a bachelor of science in business administration from Long Island University.
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