, Columnist
No One Said GE's Turnaround Would Be Easy
Investors shouldn't be surprised by the possibility of another dividend cut, or that there's no "quick fix" for the company's woes.
It was always going to be a slow grind.
Photographer: Luke Sharrett/Bloomberg
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If General Electric Co. makes another cut to its dividend in the middle of a breakup, will it still hurt?
The short-term answer is yes: GE’s stock plunged on Wednesday after CEO John Flannery said the fate of the payout is partly dependent on the steps he takes to unwind the company’s conglomerate structure. Speaking at an annual spring confab for industrial bigwigs, Flannery said he needs to see how the merger of GE’s transportation unit with Wabtec Corp. announced this week “plays out.” That deal is slated to close in early 2019.