General Electric cut its quarterly dividend for the first time since 1938, marking a reversal of the conglomerate’s repeated defense of the pay-out and an admission that the severity of the financial crisis defies its expectations. GE plans to slash the quarterly dividend to 10 cents a share from 31 cents, beginning in the second half of this year. The move, which will save the company US$9B annually, ends months of speculation about the pay-out’s fate and could serve to assuage investors’ concerns for its finance arm, GE Capital.
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