This article was originally published on Kiplinger – https://www.kiplinger.com/
Lifetime wealth creation: $608.1 billion
Annualized return (July 1926-December 2016): 10.7%
Current dividend yield: 5.6%
Current analyst ratings: 2 strong buy, 1 buy, 7 hold, 0 sell, 2 strong sell
As hard as it may be to believe these days, shares in General Electric (GE, $13.33) have been one of the best bets in history. That may not be the case going forward. Shares in the industrial conglomerate have lost more than half their value over the past 52 weeks. Heck, they’re down almost 60% on a price basis over the past decade. The Dow, meanwhile, is up more than 90% over the last 10 years.
The company has undergone tremendous change over time. Its latest transformation was spawned during last decade’s Great Recession. In response to tightening regulations, management was compelled to sell off the company’s sprawling financial operations, a powerful source of profits. The GE of today is a sputtering industrial conglomerate, and investors aren’t quite sure what to make of its prospects. Warren Buffett, renowned for his patience, finally threw in the towel and sold his remaining stake in GE in 2017.
General Electric, one of the original 12 Dow stocks, might not have a place in the blue-chip average for much longer.