Goldman Sachs: GE should suspend dividend for the next 18 months

General Electric should suspend its quarterly dividend for the next 18 months, Goldman Sachs wrote in a Thursday night note to clients.

“To avoid another dividend cut and potential rating downgrade we think the most prudent action would be for GE to consider suspending its common dividend for the next 18 months,” Goldman Sachs said in the note.

Goldman Sachs said a dividend suspension would solve the two risks GE faces of a dividend cut and a credit rating downgrade, “without sacrificing the long-term.”

GE stock was largely unchanged at $12.77 per share in premarket trading Friday.

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