Dividend policy of a company is basically the rate of dividend payout decided by the company’s board of directors with a view to distribute the profit earned by the company among its investors. Dividend policy of the company usually depends on the present and future financial performance of the company and the preferences of the investors. In context to dividend policy of General Electric Co., the company has continuously been shedding its financial assets with the aim of becoming easier to be analyzed for dividend growth purposes. The company always tries to increase its dividend payout ratio for which it has been continually putting renewed focus on industrial activities such as water production, household appliances, transportation, construction and various other profit making activities. It is only due to the GE Company’s increased focus on industrial activities that it has the ability to create around 8% earnings per share during the post recession period without performing strongly in terms of financing activities. The company has been able to increase its dividend payout ratio every year as a result of its strong financial decisions such as plans to cut costs by 2 billion dollars every year, developing the habit of making 5 billion dollar worth of industrial acquisitions every year and its continuous efforts towards making strong investment decisions.