General Electric Co. (NYSE:GE) (3.3%) (GE – $26.57 – NYSE) is an industrial conglomerate based in Fairfield, Connecticut, with leading positions in power, energy, healthcare, and aviation equipment, services, and financing. GE has materially downsized its finance business through the 2014 spinoff of Synchrony Financial and the sale of most of its finance verticals. Financial businesses will be retained in healthcare, energy financial services, and aviation to support key industrial businesses. The company recently became the first institution to be de-designated as a Systemically Important Financial Institution (SIFI), providing more balance sheet flexibility and allowing the company to buy back upwards of $50 billion of stock. On the industrial side, GE is integrating its $10 billion acquisition of Alstom’s power assets, broadening its scale and capabilities. It is also ramping up production of its efficient H-turbine for power plants and its LEAP engine for the next generation of fuel efficient narrowbody aircraft. Finally, GE is aggressively building out its digital capabilities, focusing on the remote monitoring and optimization of its installed base. The transformation of GE, now almost complete, is creating a focused industrial company capable of driving high single digit earnings growth while paying a progressive dividend.
From the Gabelli Dividend Growth Fund second quarter 2016 commentary.
