Get a loan, buy GE shares, and pay interests with the dividends?

[risktaker]

Never borrow money to "invest" in stocks or bonds.

Quote from crgarcia:

How much they might cut the dividend?

A 25% cut is still OK to me.

 

[Corelio]

Quote from risktaker:

Never borrow money to "invest" in stocks or bonds.

Tell that to the carry traders...

 

[sjfan]

Quote from crgarcia:

Wait until the Dow is at 12,000 then sell?
(Even if it takes 7 or 10 years)

Meanwhile the dividends pay out the interests (the loan must be fixed rate, for safety)

Do you think you are clever for suggesting this? do you think this is a good trade?

Pure stupidity. Stock goes down - either because of market movements, GE bail out (dilution of equity or wiping out equity all together), etc.

How is what you are suggesting not just good old buy stocks levered?

 

[LEAPup]

IF you can get a loan right now, I'd love to be a fly on the wall listening in on the conversation when a person tells the loan officer they're about to buy stock, and pay the interest with the "dividend." Lol!!! I bet that would be a good one!

 

[bond_trad3r]

Bank of America would probably do it. IMHO they're shittier than Shittybank.

I mean Countrywide & Merill Lynch. C'mon!!

 

[KINGOFSHORTS]

They should have cut 100% I do not see the point of paying a dividend when cash is better used right now to improve the balance sheet.

When the economy recovers in 15 years then they can reinstate the dividend.

 

[Hurricane]

Quote from KINGOFSHORTS:

I do not see the point of paying a dividend when cash is better used right now to improve the balance sheet.

It's a widow and orphans stock. They need to maintain some dividend to provide income for long time stockholders.