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5 Reasons Why You Should Invest in General Electric Stock in 2022

A stock’s price fluctuates with the market, so that means that there’s no telling when you’ll make money on your investment. That’s why it’s important to diversify—when one company takes a dive, another might pick up the slack, resulting in minimal damage to your portfolio. Right now, there are plenty of reasons to invest in General Electric stock in 2022. Here are five of them

1) The US economy is getting better

In the past year, even though we have seen inflation rates rise,  we’ve seen unemployment rates fall and job creation rise. The stock market has reached new highs, and consumer confidence is slowly returning. All of these factors point to a bright future for the US economy, and General Electric is poised to take advantage of it. Here are five reasons why you should invest in GE stock in 2022

2) GE will benefit from President Trump’s tax reform

In December 2017, President Trump signed into law the Tax Cuts and Jobs Act, which lowered the corporate tax rate from 35% to 21%. This tax reform will be a huge benefit to GE, as it will boost the company’s bottom line. GE is also a global company, so it will benefit from the fact that the new tax law allows for the repatriation of overseas profits at a reduced tax rate. In addition, GE is making significant changes to its business portfolio, which will make it even more profitable in the years to come. Finally, GE has a strong history of dividend growth, so investors can expect to see continued dividend increases in the years ahead.

3) The company is investing in renewable energy

As the world becomes more aware of the need to reduce greenhouse gas emissions, companies that are investing in renewable energy will be well-positioned for growth. GE is one of those companies. In 2019, they announced plans to invest $10 billion in renewable energy by 2020. And they’re not alone – according to a report from Goldman Sachs, global investment in renewables is expected to reach $2 trillion by 2025.

4) The company is cutting its debt

GE’s total debt has been reduced by $25 billion since 2018 and the company plans to cut an additional $8 billion by 2020. This will help make the company more attractive to investors and reduce the risk of default.

5) Buybacks are coming

In 2018, GE announced that it would be selling off $20 billion worth of assets and using the proceeds to buy back shares. In 2019, the company announced an additional $10 billion share repurchase program. So far, GE has bought back $7.5 billion worth of stock. At its current rate, GE will have repurchased all of its shares by 2022.

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