NEW YORK (TheStreet) -- General Electric (GE) shares haven't exactly flourished in 2014. They have fallen 8% so far while the S&P 500 has climbed more than 12%. Even so, GE's dividend yield of 3.5% was enough for TheStreet's David Peltier to add the stock to his list of top dividend stocks for 2015.
The conglomerate is known for its diversified portfolio of businesses, but management recently has been refocusing GE on its industrial roots. In July, the company spun off its Synchrony Financial (SYF) unit, which now trades with a market cap of $30 billion.
The hope is that GE's higher-margin, higher-growth industrial businesses will allow the stock to trade with a higher price-to-earnings ratio. Currently, the stock trades at just 15 times what the company is expected to earn per share over the next year, while the S&P 500's forward P/E ratio is 18.
According to Morningstar, General Electric trades at 17 times what the company earned per share over the past 12 months, less than both the industry average of 20 and the S&P 500 average of about 19.