GE chairman and CEO Larry Culp is trying to free up cash to save the once-venerable company while acknowledging that regular investors have fled the stock because of the drastic move. GE traded above $10 a share before the cut. Even with the stock’s slide, Culp said GE “would make those same decisions today, because those were the right decision to make sure the company is facing forward.”
Many analysts on Wall Street have warned clients that Culp’s cut may be just the beginning of a slow and difficult process.
Shares of GE closed down 4.6 percent on Friday, ending just above $7 a share. The dividend is payable on Jan. 25 to shareholders at the close of business Dec. 20.