GE Cuts Dividend, Shares Sink

 GE

General Electric is cutting its stock dividend and selling railroad and light bulb units.

The dividend cut, is GE's second since the Great Depression. 

General Electric  (GE) is one of the most widely held stocks. The next dividend will be 12 cents a share.  Cutting the dividend, will save GE more than $4 billion per year. 

While many companies are increasing dividends thanks to a healthy  U.S. economy is healthy and the stock market is booming, GE is not making enough money to cover its dividend payments. Free cash flow, has gone down for six straight years.

GE says it plans to shrink its board of directors from 18 members to 12 next year. The new board will also include a committee to focus on expenditures.

GE will cut its corporate workforce by 25%.

GE plans to shed $20 billion worth of businesses in the next year or two. Two of which is the transportation division, and General Electrics iconic lightbulb division that has symbolized the company for 125 years.