Comments on: Why is General Electric paying a dividend of 10%? http://www.creditwritedowns.com/2009/01/why-is-general-electric-paying-a-dividend-of-10.html Finance, Economics and Markets Fri, 10 Feb 2012 00:37:00 +0000 hourly 1 By: John Creighton http://www.creditwritedowns.com/2009/01/why-is-general-electric-paying-a-dividend-of-10.html#comment-2773 John Creighton Mon, 26 Jan 2009 09:08:22 +0000 http://www.creditwritedowns.com/?p=4959#comment-2773 So GE has a return on Equity of 15.57% and their retained earnings seem to be growing. From that perspective it looks as they can afford it at least from a historical perspective. Not sure about future projections. <a href="http://www.google.com/finance?fstype=bi&q=NYSE:GE" target="_blank" rel="nofollow">http://finance.google.com/finance?fstype=bi&q...</a> However, Their return on Assets is only 2.14%. Their assets seems seem to under perform their 10 year treasury while their equity seems to over perform their 10% dividend. I think I need to learning more to understand why these two numbers are so different. So GE has a return on Equity of 15.57% and their retained earnings seem to be growing. From that perspective it looks as they can afford it at least from a historical perspective. Not sure about future projections.
http://finance.google.com/finance?fstype=bi&q…

However, Their return on Assets is only 2.14%. Their assets seems seem to under perform their 10 year treasury while their equity seems to over perform their 10% dividend. I think I need to learning more to understand why these two numbers are so different.

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