General Electric does not plan to cut its dividend in 2019, people familiar with the situation said, CNBC’s David Faber reported Thursday.
CEO John Flannery told analysts at an industry conference in Florida on Wednesday in which GE will “have to see how” the company’s turnaround plan “plays out“ before deciding whether to cut the company’s dividend again. GE shares on Wednesday dropped the most in just one day of trading since April 2009 after Flannery’s comments.
Flannery’s remarks may have been misinterpreted, according to Faber’s sources. The industrial conglomerate cuts its dividend in half on Nov. 13. Beginning in December, GE’s quarterly payout will be 12 cents per share, rather than the 24 cents per share of years past.
Shares of GE rose 2.5 percent Thursday.