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Cramer on owning GE stock: 'Rarely have I felt this stupid'

  • CNBC's Jim Cramer says General Electric's latest comments about its dividend are not reassuring.
  • Cramer's comments came after JPMorgan analysts predicted a GE stock dividend cut "as increasingly likely."
  • A spokeswoman for GE says: "The dividend remains a top priority."

CNBC's Jim Cramer said Wednesday that General Electric's latest comments about its dividend are not reassuring and he feels "stupid" owning GE stock.

In a new GE research note, JPMorgan analysts said they see "a dividend cut or 'adjustment' as it is likely termed, as increasingly likely."

A spokeswoman for GE, in response to a CNBC request for comment on the report, said: "The dividend remains a top priority."

"That's not good enough," said Cramer. He said he personally owns GE as does his charitable trust. Instead, Cramer suggested that GE should have said: "The board agrees that the dividend would be paid."

"The statement would be very simple," Cramer said on "Squawk on the Street."

"It would say, 'The board has listened to what people are saying, and the board has tremendous confidence, and the dividend will be kept intact at these prices,'" the host of CNBC's "Mad Money" said.

The current quarterly dividend on GE stock is 24 cents per share, which puts the yield around 4.2 percent based on early Wednesday trading at around $23 per share. Yield percentages fluctuate with movements in stock price.

"I don't know what to do," Cramer said. "Rarely have I felt this stupid."

Despite criticizing GE's statement on the dividend, Cramer said he still has confidence in new GE chief executive John Flannery.

In recent days, GE has seen sweeping personnel changes, including the departure of its CFO, the earlier-than-expected retirement of its chairman, and the addition of Trian Partners CIO Ed Garden to the board.

Trian CEO Nelson Peltz, whose activist hedge fund owned a $1.68 billion stake in GE as of June 30, has been pushing for changes. He said on CNBC on Tuesday that Flannery told Garden "everything is on the table."

WATCH:  The last thing GE will do is cut its dividend: William Blair analyst

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