Citing continued financial improvement, General Electric (NYSE:GE) raised its quarterly dividend on Friday for the second time this year, sending its shares surging.
The Fairfield, Conn-based company is offering a dividend of 14 cents a share, up 17% from 12 cents, payable Jan. 25 to shareholders of record on Dec. 27.
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GE chief executive Jeff Immelt said the company, which operates in the industrial, technology, media and financial sectors, was able to increase the dividend due to “continued strong cash generation, accelerated recovery at GE Capital and solid underlying performance in our Industrial businesses.”
The move follows an upbeat outlook on Tuesday by GE Capital CEO Mike Neal, who said the company sees earnings growth next year and into 2012, according to Dow Jones Newswires.
The unit’s profit is expected to grow to more than $3 billion this year, he said, up from $1.7 billion a year ago.
Looking ahead, the company plans to continue capitalizing on financially attractive inorganic growth opportunities while searching for opportunistic share repurchases and investing in innovation and part of its “thoughtful capital-allocation efforts.”