Wage Cut Highlights Peril of Relying on Income from Dividends

The decision by General Electric to cut its dividend in half as the company restructures should be a warning to investors: Don’t count on income from dividends.

GE’s move reduces its quarterly dividend to 12 cents a share from 24 cents and will give its shareholders $4.1 billion less each year.

Because the company has only cut its dividend twice since 1899, the move may come as a surprise to some shareholders. Yet experts caution that investors need to be ready for such moves when investing in dividend stocks.

Read the full article on CNBC.com