GE Stock Reaches 6-Year High as GE Aerospace Announces Plans for $15 Billion Stock Buyback

By
Bill McColl
Bill McColl
Full Bio

Bill McColl has 25+ years of experience as a senior producer and writer for TV, radio, and digital media leading teams of anchors, reporters, and editors in creating news broadcasts, covering some of the most notable news stories of the time.

Learn about our editorial policies
Published March 07, 2024
05:12 PM EST
GE logo on a GE Aviation CF6-80C jet engine that's part of an Airbus A300-600 aircraft

Balint Porneczi / Bloomberg / Getty Images

Key Takeaways

  • GE Aerospace announced Thursday that when it becomes a standalone company in April, it plans to buy back $15 billion in shares.
  • The company also plans an initial dividend payout at 30% of net income.
  • GE Aerospace will be what remains of the original General Electric following GE's breakup into three separate companies.
  • Shares of parent General Electric rose to their highest level in more than six years Thursday, and have advanced more than 80% in the last year.

General Electric (GE) shares rose to their highest level in more than six years Thursday after the company’s GE Aerospace business announced a planned $15 billion stock buyback as it prepares to become a standalone company April 2.

The aerospace unit will be what remains of the traditional GE following its split into three, separate companies that was announced in November 2021.

GE Aerospace said at its Investor Day Thursday that the buyback, along with dividends, would be part of its plan to return 70% to 75% of available funds to shareholders. That includes an initial dividend payout at 30% of net income. 

In addition, the company reaffirmed its earnings guidance and presented a longer-term outlook, projecting operating profit of about $10 billion in 2028.

Lawrence Culp, CEO of GE and GE Aerospace, said that “our financial outlook demonstrates confidence in our future, with a robust market and demand for our products and services underpinning continued growth across revenue, operating profit, and cash generation."

GE shares have nearly doubled in value over the last year, and reached their highest price in more than six years Thursday. At the close, they stood at $166.50, up 4.4% on the day.

GE

TradingView
Do you have a news tip for Investopedia reporters? Please email us at
Article Sources
Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy.

  1. GE Aerospace. "GE Aerospace Hosts 2024 Investor Day."

  2. General Electric Co. "GE Plans To Form Three Public Companies Focused on Growth Sectors of Aviation, Healthcare, and Energy."

Take the Next Step to Invest
×
The offers that appear in this table are from partnerships from which Investopedia receives compensation. This compensation may impact how and where listings appear. Investopedia does not include all offers available in the marketplace.