Boston, MA 02/06/2014 (wallstreetpr) – A good stock sure to provide good returns on invested capital is one that is bought when it is trading at low margins with a high prospect of growing in a few months. This is the strategy that any investor should take into consideration while looking at General Electric Company (NYSE:GE) stock prices in the market. GE has proved over the years to be a stock with the potential of picking up amidst the economic crisis. The stock in 2009 slumped into low trading margins with its dividends dropping by 68%. If you had taken the bold step to purchase the stock during those period, right now you would be ripping results of up to 272%. There is no doubt it could have taken a lot of guts to even consider looking at GE in 2009 as it was marred with frozen credit market with the deteriorating economy.
Why GE is a buy at the current market conditions
General Electric Company (NYSE:GE) has raised its dividend six times since 2009 an indication that it is to do even better in the coming months .Its quarterly payment has doubled over the period commanding a yield of 3.6% as of the moment. There is a high expectation that the stock will continue to grow in the same line. GE is a leading player in the aircraft industry that has picked up since the economic crisis of 2008 and is still engages in other business portfolios such as Locomotives, wind and gas, turbines and medical equipment. This essentially present a huge portfolios that are sure to ensure the company grows consistently amidst the picking world economies.
The sources of revenue for General Electric Company (NYSE:GE) are sure to never dry up as they mostly come from recurring business and maintenance business. This business segment alone represent twice as much in terms of profit margins as compared to equipment sales.
General Electric Company (NYSE:GE) was stable in Wednesday’s trading session dropping slightly by 0.20% to close the day at $24.52
