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General Electric: The Worm Has Definitively Turned

Those of you who follow me know I have been pounding the table on General Electric for sometime now.

The current solid dividend yield of over 3%, combined with the potential for outstanding growth, makes General Electric a no-brainer buy in my book.

Even so, creating a full position in a stock is not something to be taken lightly, especially when the goal is to lock in the highest yield possible.

In the following article, I will make the case how the buy signal just flashed for General Electric.

General Electric (NYSE:GE) currently offers income investors a safe long-term investment. The company has a fortress balance sheet and strong cash flow. The planned transformation of the company into an industrial powerhouse is expected to reward investors with capital gains and dividend growth. This makes the stock an excellent total return investment. Furthermore, the stock has several positive catalysts on the horizon.

Current Chart


Three major positives

Industrial pure-play premium comes to fruition

The sale of GE Capital real estate assets has vastly accelerated the company's exit from the finance industry. The acceleration of the plan to scale down GE Capital is prudent based on the voracity of the Fed's actions against Systemically Important Financial Institutions, otherwise known as SIFI. The Fed currently puts GE Capital as the seventh largest bank. Recently, the Fed proposed a set of tougher rules for General Electric's GE Capital unit. The new rules are...