Industrials

GE doesn't plan to cut dividend again, sources say

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Michael Sheetz@in/michaeljsheetz@thesheetztweetz
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Key Points
  • General Electric does not plan to cut its dividend in 2019, people familiar with the situation tell CNBC's David Faber.
  • CEO John Flannery's remarks a day earlier about the company's turnaround plan may have been misinterpreted, according to sources.
GE stock gets hammered after posting worst one-day performance in nine years.
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GE stock gets hammered after posting worst one-day performance in nine years.
Squawk on the Street

General Electric does not plan to cut its dividend in 2019, people familiar with the situation said, CNBC's David Faber reported Thursday.

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.