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    How Investors May Respond To GE Vernova (GEV) Dividend Hike Buybacks And Vertical Integration Push

    Simply Wall St·12/20/2025 22:27:47
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    • Earlier in December, GE Vernova raised its multi‑year revenue outlook, doubled its quarterly dividend to US$0.50 per share from US$0.25, expanded its share repurchase authorization to US$10.00 billion, and outlined M&A plans including the US$5.30 billion Prolec GE acquisition funded with an equal mix of debt and cash.
    • The company is tightening control of its supply chain through vertical integration deals like Woodward and Prolec GE, aiming to bolster grid equipment capabilities and support long-term power infrastructure demand tied to AI data centers and electrification.
    • We’ll now examine how GE Vernova’s dividend hike and larger buyback pool influence its investment narrative and future earnings profile.

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    GE Vernova Investment Narrative Recap

    To own GE Vernova, you have to believe in sustained demand for power infrastructure tied to AI data centers, grid upgrades and cleaner generation, while accepting exposure to big, complex projects that can swing results. The December update strengthens the near term story by pairing higher multi year revenue targets with richer capital returns, but it does not remove the key risk that large transmission and grid projects can still be canceled, deferred or repriced if economics change.

    Among the announcements, the jump in GE Vernova’s buyback authorization to US$10.00 billion stands out, given how volatile the shares have been around AI related headlines. While this does not change project or execution risks, it matters for the near term catalyst of earnings per share growth and can amplify the impact of any upside or downside from the company’s large power and electrification backlog.

    But investors also need to be aware that heavy reliance on large grid and transmission projects leaves GE Vernova exposed if...

    Read the full narrative on GE Vernova (it's free!)

    GE Vernova's narrative projects $48.0 billion revenue and $5.8 billion earnings by 2028. This requires 9.5% yearly revenue growth and a $4.6 billion earnings increase from $1.2 billion today.

    Uncover how GE Vernova's forecasts yield a $681.43 fair value, a 4% upside to its current price.

    Exploring Other Perspectives

    GEV 1-Year Stock Price Chart
    GEV 1-Year Stock Price Chart

    Eighteen fair value estimates from the Simply Wall St Community span roughly US$360 to US$927 per share, highlighting how far apart individual views can be. That diversity sits against a business where big, lumpy infrastructure projects can still be canceled or delayed, so it makes sense to compare several of these perspectives before deciding how GE Vernova fits into your portfolio.

    Explore 18 other fair value estimates on GE Vernova - why the stock might be worth as much as 41% more than the current price!

    Build Your Own GE Vernova Narrative

    Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

    • A great starting point for your GE Vernova research is our analysis highlighting 2 key rewards that could impact your investment decision.
    • Our free GE Vernova research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate GE Vernova's overall financial health at a glance.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.