General Electric raised its quarterly dividend Friday after CEO Jeff Immelt said that the conglomerate's dividend would go up as earnings rise.
General Electric (NYSE:GE) raised its payout 5% to 23 cents per share, payable Jan. 26, 2015, to shareowners of record at the close of business on Dec. 22. The ex-dividend date is Dec. 18.
Nevertheless, shares fell nearly 1% to 25.17 on the stock market today. Analysts have warned that the stock will be under pressure as GE's recent moves in the oil and gas industry now leave it vulnerable to falling crude prices, which hit fresh lows Friday.
"We are pleased to increase GE's quarterly dividend for the seventh time in five years," said Immelt in a statement. "Returning cash to shareowners remains our top priority while we continue to invest in long-term growth. Alongside our strong operational outlook, today's announcement reflects our balanced and disciplined approach to capital allocation."
At an industry conference in May, Immelt said that GE would "continue to grow the dividend aligned with earnings," according to Bloomberg.
In early 2009, the company was paying a 31-cent quarterly dividend but cut it back to 10 cents due to the financial crisis.
GE has been narrowing its focus to its industrial core and away from the financial sector, which got the company in trouble during the crisis.
GE has spun off its private-label credit card unit Synchrony Financial (NYSE:SYF) and is shedding its household appliance division.