CEO John Flannery told analysts at an industry conference in Florida on Wednesday that 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 a single 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 is 12 cents per share, rather than the 24 cents per share of years past.
Shares of GE rose 2.5 percent Thursday.