GE keeps dividend unchanged, stock rallies

Shares of General Electric Co. GE, +1.09% rallied 1% in morning trade Friday, after the industrial conglomerate said its quarterly dividend will remain at 12 cents a share. The dividend will be payable July 25 to shareholders of record on June 18. GE’s stock had tumbled 7.3% on May 23, the biggest one-day selloff in nine years, after Chief Executive John Flannery didn’t give a definitive answer to an analyst’s question of whether he could “stand behind” the current dividend rate. GE’s current dividend yield of 3.45% was above the yield for the SPDR Industrial Select Sector ETF XLI, +0.33% of 1.77%, and the implied yield for the Dow of 2.10%, according to FactSet. GE’s stock has now shed 20.2% year to date, while the industrial ETF has gained 0.5% and the Dow Jones Industrial Average DJIA, +0.30% has tacked on 2.0%.