When I first started investing I of course knew of the bellwether General Electric. Industrial conglomerate with a storied history and a great dividend yield. Alas, the market is unforgiving. It was announced today that GE would be pulled out of the Dow Jones Industrial index and be replaced by Walgreens (WBA).
Viewing it’s stock chart you just see a straight slide down over the past year. Before GE cut it’s dividend earlier this year, GE was yielding an about 4.5% dividend yield. Since then, the stock has been about halved and is now yielding about 3.5%. It’s definitely been a rough ride, but what will the future hold?
The MIP Portfolio doesn’t aim to hold individual stocks, unless there is a compelling reason to do so. I have been considering over-weighting some of the better performers within an ETF in the MIP Portfolio, but have not begun to do so. Currently, the only single stock holding I have in this portfolio is Apple (AAPL). I’ve held this one as an income growth story, with the view dividends will continue to increase as Apple transforms from a hardware only company to a more diversified company with greater focus on services. Should this warrant holding it within the portfolio when the mission of the portfolio is to be the best income portfolio ever created? Let’s discuss (please comment below).
I write this post to just ponder whether GE is at a point to start adding to an income focused portfolio, however I think it best for the MIP Portfolio to stay away when there are much better opportunities to deploy capital elsewhere.
Would love to hear your thoughts!