Investors will have to wait until next month to find out whether General Electric will cut its dividend yield, the company’s chief executive said Friday.
“The process we’re going through, the final completion of our analysis of everything going on in the company, we’re going to present that” on Nov. 13 at GE’s investor day, CEO John Flannery said on CNBC’s “Squawk on the Street.”
“From a philosophy perspective, we manage for total shareholder return. So it’s going to be a mix of capital that goes into a dividend and a mix that goes into organic and inorganic investment, and that has to be balanced,” Flannery told CNBC’s David Faber.
Questions about whether GE should reduce its 4.2 percent dividend yield — the second-highest of any Dow Jones industrial average component behind Verizon — arose Friday after the company reported disappointing quarterly earnings and cut its forecast for the year.
GE posted earnings per share of 29 cents, while analysts polled by Reuters expected a profit of 49 cents a share. The stock traded down nearly 3 percent and briefly dropped more than 8 percent in the premarket.
General Electric is also the worst-performing Dow component this year, dropping 21 percent.
Source: Investment Cnbc
D-Day: GE CEO says decision on dividend to be made at November investor day