Rumors of a dividend cut at GE have been swirling all year. Today, we had an announcement that GE would cut its dividend for only the second time since the great depression. GE also announced it was shedding assets. The announcement was not priced in. Shares dipped another eight percent.

The New York Times reports G.E. Cuts Dividend as New C.E.O. Moves to Streamline an Industrial Giant.

General Electric, the nation’s largest industrial company, cut its dividend on Monday, only the second time it has done so since the Great Depression.

The company announced before the start of stock trading that it would reduce its quarterly payout by half, to 12 cents a share from 24 cents a share.

Last month, when G. E. reported disappointing financial results, Mr. Flannery said that the company would sharpen its focus on fewer industrial businesses and shed at least $20 billion in assets over the next two years.

There may well be more. Mr. Flannery added detail to his plans for G. E.’s future in a presentation on Monday. The units to be disposed of, he said, would probably include the lighting, and railway locomotives divisions and an industrial solutions business that sells energy-distribution and monitoring equipment. Ten smaller assets, which Mr. Flannery declined to identify, will also be shed.

October Lie

On October 11, CNBC reported these amusing details.

In a GE research note, JPMorgan analysts said “A dividend cut or ‘adjustment’ as it is likely termed, is increasingly likely.”

A GE spokeswoman replied “The dividend remains a top priority.”

On Squawk Box Cramer proposed the board should have said: ‘The board has listened to what people are saying, and the board has tremendous confidence, and the dividend will be kept intact at these prices.'”

Despite criticizing GE’s statement on the dividend, Cramer said he still has confidence in new GE chief executive John Flannery.