Wednesday, December 12, 2007

General Electric and US Bancorp Announce Dividend Increases

Both General Electric (GE) and US Bancorp (USB) announced increases in their quarterly cash dividends this week.

General Electric
General Electric announced a 10.7% increase in its quarterly dividend to 31 cents per share versus 28 cents per share in the same quarter last year. GE's 5-year historical dividend growth rate is about 9% versus the recent rate increase of 10.7%. The new payout ratio is approximately 51% based on 2008 estimated earnings of $2.42. The 5-year historical average payout ratio is about 51% as well.

US Bancorp
US Bancorp announced a 6.25% increase in its quarterly dividend to 42.5 cents per share versus40 cents per share in the same quarter last year. USB's 5-year historical dividend growth rate is about 15% versus the recent rate of increase of 6.25%. The new payout ratio is approximately 61% based on 2008 estimated earnings of $2.80. The 5-year historical average payout ratio is about 48% as well.

(click on table/chart for larger image)

dividend analysis General Electric and US Bancorp December 12, 2007
General Electric and US Bancorp stock chart December 12, 2007


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