General Electric: A 5% Yield On Its Way?

I have been thinking a lot about dividend risk and General Electric (NYSE: GE)in recent times, as well as whether its shares could eventually yield 5%, on a forward basis, from about 4%, which currently implies the possibility that GE will pay out $0.96 a share in fiscal 2017, based on its latest share price of $24.2.

5% yield

As you might know, in order to reach a 5% yield either its shares should fall22% to $19 from their current levels, assuming a constant payout, or a miracle would be needed, with a large dividend hike (say 20% or so) surprising the investor community in the fourth quarter - sadly, the latter scenario, which assumes a constant share price, is unrealistic.

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