General Electric (NYSE: GE) has long been crowned king of blue chip dividend stocks.
The company’s revered CEO – Jack Welch – led the company through a period of rapid growth. During his tenure from 1981 to 2001, the company’s earnings grew fourfold, it made 600 acquisitions and the market valued multiplied 28-fold.
Shares also performed handsomely for General Electric investors, rising more than 4,000% under his leadership. A couple decades of amazing performance made Welch an executive leadership guru.
That same performance made GE the most popular stock among investors over the age of 65, according to a study from Openfolio. If you’re like most Daily Profit readers, the chances are good that you own GE stock.
Unfortunately, GE shares have lost their luster in recent years. In fact, over periods including the last two, five and 10 years, GE stock has lagged considerably behind the S&P 500 index.
Source: Yahoo Finance
To be completely fair, GE partially makes up for this underperformance in one small way.
That’s because GE’s dividend yield is currently 3.6%. That’s 80% higher than the 2% dividend yield from the SPDR S&P 500 ETF (NYSEArca: SPY). But even the bigger dividend doesn’t make up for the underperformance of GE’s stock price.
Andy Crowder and I recommended GE shares to our High Yield Trader readers in late 2013. At the time, the stock was trading at $27 and the dividend yield was 2.8%.
Since then, GE shares have fallen 3.6%. That’s been far worse than the 15.3% gain for the S&P 500 during the same period.
This may sound like a bad investment. But nothing could be further from the truth. That’s because by using a simple income strategy, we’ve been able to deliver solid profits.
Just take a look at how our investment in GE has performed. The following table compares the results of our Instant Income Strategy versus a simple investment in the stock with the dividend payments.
|Strategy||Stock Return||Dividends||Instant Income||Total Return|
|Instant Income Strategy||-3.6%||5.8%||18.3%||20.5%|
What you’ll see is that we’ve been able to greatly multiply the returns. And even during a period when GE stock declined, we were able to deliver a 20.5% gain.
That’s an amazing outcome. I’d like to share all the details with you in our live investing seminar event. It’s called Instant Income: How to Triple Your Dividends with 2 Simple Strategies – just click here to RSVP today.
During this free one-hour event, Andy and I will reveal exactly how to execute this surprisingly simple strategy on any blue chip dividend stock in your investment portfolio.
As you’ve already seen, this strategy can deliver healthy profits even when a stock’s price is falling.
Our live event takes place this Wednesday, July 29 at 2 p.m. EDT. I’d like to invite you to be my guest. All you need to do is click here now to reserve your seat.
I look forward to speaking with you tomorrow.