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Tom Huber, who has run the T. Rowe Price Dividend Growth Fund (MUTF: PRDGX) since 2000, recently told Barron’s that General Electric Co. (NYSE: GE) is his best stock pick.
"After not owning General Electric for many years, we've come back to the stock in the past six months," he told the investment weekly. "It makes sense right now to own some large-cap, high-yielding names with durable businesses. Historically, the financial business generated more than half of GE's profit. By 2016, that should fall to 25%, with industrial segments accounting for the rest. The current higher-quality earnings stream deserves a higher multiple. Now at $25, the stock is worth closer to $30 in the next 12 to 18 months with protection from the 3.6% dividend yield."
The current consensus on GE is $29 a share – with a high-water estimate of $33.