Yesterday, General Electric finally made the move that many were predicting -- a dividend cut. The company has cut its quarterly dividend from $0.31 to $0.10, starting with the July payment (the April payment will still be $0.31).
I own shares of General Electric in my RRSP. This move will reduce the amount of dividends that I receive in 2009 by $90, and by double that amount for the following years.
Hopefully, within a few years things will stabilize and GE will be able to increase its dividend again.
I don't plan on selling my shares. I still believe that GE will thrive in the future. In fact, I am considering buying some more at some point in the future. At the current price of $8.50 a share, an annual dividend of $0.40 still represents a yield of almost 5%.