Bought another stock

After selling my Boeing (NYSE:BA) stock a couple weeks ago I began researching a few companies. After all was said and done I decided to go with a tried and true company, General Electric (NYSE:GE). I felt that this stock had a great upside with minimal downside. It is trading in the mid $16 range. The last time it saw this price was right before a big run up in late 1996/early 1997. When it topped out on that run it was at nearly $60 per share.

I think the future is strong for GE as commercial aviation rebounds. As they begin to deliver more engines for the 787, 747-8 and A350 they will gain more market share. Their partnership in CFM (engines for the 737 and A320) will also lead to great profits. GE engines some of the greatest, and best selling, airplanes in the world. They also have a healthy lease/finance arm. As the market improves and people start traveling they will be able to raise lease rates on their aircraft. This in turn will lead to higher profits and more growth.

GE also pays solid dividends. These dividends are not in danger of going away, they have been paying them since June of 1987. The only downside is they have recently cut their dividends, from the $0.30 range down to $0.10. Short term this may be a bad thing for investors, however, GE is a solid company and will have the free cash flow to be able to pay these dividends without much trouble.

Overall, I think GE was a buy for me. Anytime you can get a solid Blue Chip under $20 it should be considered. GE was purchased for the long haul, not an overnight turn. It will form a small base with constant dividends and slow maturity to be a healthy part of my portfolio.