General Electric was right to cut its dividend, Cramer said during Friday’s Stop Trading!. He brushed off talk that the move signaled big trouble at the storied industrial conglomerate.
Cramer pointed to a Sanford Bernstein research report that said the capital generated from the cut is essential to support GE’s ailing commercial-finance division. So while a dividend cut would normally be seen a negative, “it was a positive” in this case, he said. The company will now have much-needed cash to support its operations.
“I applaud management for doing it,” Cramer said.