GE Stock buyback has been a significant strategy for returning value to shareholders. GE has a history of buying back its own shares, with a total of $126 billion in buybacks completed between 2000 and 2020.
In 2020, GE announced a new $20 billion share buyback program. This move is a clear indication of the company's commitment to returning value to its shareholders.
By buying back its own shares, GE can increase the value of its remaining shares and reduce the number of outstanding shares. This can lead to a rise in the stock price and increase the value of shareholders' investments.
For your interest: Ge after Hours Stock Quote
GE Stock Buyback Plan
GE's stock buyback plan is a significant aspect of their efforts to return value to shareholders. The company announced plans to divest its financial services business in 2015, with the goal of returning $90 billion in value to shareholders by 2018.
A major part of this plan involves stock buybacks, with GE aiming to repurchase $50 billion in shares over a three-year period. This is the largest single program geared toward shareholder value in the company's history.
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The buyback schedule is as follows:
GE is on track to fulfill its promise, with the company having completed $15 billion in stock buybacks as of the third week of July 2016. This leaves just $3 billion shy of the full-year total with nearly five months remaining on the calendar.
NYSE: GE
NYSE: GE is a blue chip stock with a rich history of dividends to shareholders. The company announced plans to divest its financial services business in 2015, focusing on its core industrial businesses.
Net proceeds from divestments are expected to return $90 billion in value to shareholders by 2018, including $50 billion of stock buybacks and another $40 billion in dividends. This is the largest single program geared toward shareholder value in the company's history.
The stock buyback schedule for GE is ambitious, aiming to reduce the outstanding share count to 8.5 billion shares, a reduction of 20%, by the end of 2018. Assets sales from GE Capital allowed the company to buyback $20.4 billion in stock in 2015.
For your interest: Stock Buyback History
Here's a breakdown of the stock buyback amounts for GE:
The company had completed $15 billion in stock buybacks for the year as of the third week of July 2016, putting it just $3 billion shy of its full-year total with nearly five months remaining on the calendar.
Frequently Asked Questions
Will GE Vernova pay a dividend?
Yes, GE Vernova has declared a quarterly dividend of $0.25 per share, payable to shareholders of record as of December 20, 2024.
What was the GE reverse stock split?
GE's reverse stock split converted 8 shares of stock to 1, reducing the number of outstanding shares from 8.8 billion to 1.1 billion. This significant change was aimed at increasing the stock's value and competitiveness.
Should I accept a share buyback?
Accepting a share buyback can be beneficial if you want to receive capital back, but consider the potential impact on stock prices and ownership. It's essential to weigh the pros and cons before making a decision.
Do I have to sell my shares in a buyback?
No, you're not obligated to sell your shares in a buyback. You can choose to keep your shares, and the company will only buy from willing sellers.
Sources
- https://www.forbes.com/sites/steveschaefer/2015/04/10/ges-50-billion-buyback-continues-corporate-americas-binge-on-its-own-stock/
- https://www.nytimes.com/2007/07/14/business/14electric.html
- https://www.fool.com/investing/2016/09/20/general-electric-stock-buyback-returning-value-to.aspx
- https://www.chicagotribune.com/2012/12/14/ge-hikes-dividend-by-12-percent-boosts-stock-buyback-plan/
- https://www.hartfordbusiness.com/article/ge-lowers-profit-guidance-suspends-stock-buybacks
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