When you think of disruptive companies, those that forever altered the competitive landscape in which they operate, there are a few that instantly come to mind.
Apple, Tesla, Amazon, Netflix and Uber are a few that completely disrupted the way we do things.
In the coming decade, there is one company set to be just as disruptive — but in a slightly different way. It’s a blue-chip, steady dividend-paying stock that is quietly becoming a disruptor that many investors have yet to acknowledged — creating an opportunity for profit as the masses realize its potential disruptions.
General Electric is an old industrial giant that is probably one of the last companies you would expect to have disruptive potential. When you think about companies like GE, you think about industrial manufacturing, airplane engines or GE’s recently sold consumer appliance division.
A technology-driven, disruptive company is not what comes to mind.
GE, along with its commercials and various conferences, is set to change that. And its share price will be a direct beneficiary of this transformation.
Still Bringing Good Things to Life
If you’ve paid attention to GE’s latest commercials, you may have guessed the company’s direction. GE’s commercials have centered on the slogan: “The digital company. That’s also an industrial company.” It’s an accurate summation of the company’s current transformation.
Specifically, GE has grown into a market leader in the industrial “Internet of Things.” Without getting into too much detail, the Internet of Things is an interconnected network of devices that operates independently of human-to-human or human-to-computer interaction.
Essentially, the Internet of Things allows you to use your phone to summon an Uber at the tap of a button or remotely start your car with a smartwatch. The idea is that machines talk directly to each other, making everything an extension of a “smart” device.
So far, the Internet of Things has largely focused on consumer-driven markets, like the examples above.
But GE is looking to apply these same ideas to the industrial market — think wind turbines that perform their own diagnostics and then notify maintenance when updates, repairs or replacement parts are needed.
Wind turbines are just the tip of the iceberg.
GE is applying this technology to everything from airplane engines to railroads, hospitals, etc. The possibilities are endless, and the revenue growth is staggering … GE estimates revenue of $225 billion by 2020!
For comparison, the cloud business that’s currently driving massive growth in the tech sector is estimated to grow to only $206 billion. The consumer segment of Internet of Things — which GE also has its fingers in — is estimated to surpass $170 billion in just four short years. As you can see, the industrial Internet of Things business is set to be a massive market … and we’ve only scratched the surface.
In short, GE is at the forefront of this movement and is positioned to dominate the potentially massive Internet of Things market.
Investing in the Internet of Things
Subscribers to my premium Pure Income service already have a week’s head start on GE. Strategies surrounding large, stable blue-chip companies with years of robust growth ahead are exactly the type of recommendations I look for when it comes to Pure Income.
Furthermore, GE has paid out a steady dividend for more than a century — a dividend that has increased in each of the past six years! Few companies can boast that kind of record, proving that GE is dedicated to increasing shareholders’ wealth.
Now, you could simply buy shares of GE stock today and wait patiently for investors to realize its potential. During your wait, you’ll pick up a decent 3% annual dividend yield, which tops the average S&P 500 yield of 2.09%.
Or you could do what Pure Income subscribers have done and turn GE into your personal income machine. Utilizing a unique strategy I have perfected over the years, Pure Income subscribers are able to generate 3% in yield for a position that lasts just over three months, equating to an annualized yield of roughly 10%!
Editor, Pure Income