With Warren Buffet buying up 3 billion in prefered GE stock shouldnt the dividens for common stock be lower thus lowering the value of GE common stock?
Potentially, but probably not. The additional capital they're receiving will mean they'll need to take less from earnings to invest in the company.
And their cash flow is enough to pay dividends to Berkshire and continue to pay their current rate. They've prided themselves on routinely increasing their dividend annually - I doubt we'll see a change. I own a little so I hope not! :)
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Potentially, but probably not. The additional capital they're receiving will mean they'll need to take less from earnings to invest in the company.
And their cash flow is enough to pay dividends to Berkshire and continue to pay their current rate. They've prided themselves on routinely increasing their dividend annually - I doubt we'll see a change. I own a little so I hope not! :)
Its independent of that. Only if GE cuts their dividend, will it be an issue.