How Investors View Boeing’s High Dividend
Despite the positive run-up Boeing (BA) stock has enjoyed in 2017, its current indicated dividend yield is 2.2%. Boeing’s dividend yield is now lower than the Dow Jones Industrial Average…
Since 2008, Boeing has had a valuation multiple higher than the industry median.
The Boeing Company has a 12-month consensus target price of $268.85, which is higher than the $246.90 target price the stock posted after its 2Q17 earnings report.
For fiscal 2017, Boeing’s earnings per share (or EPS) are expected to rise 38.4% YoY to $10.00 per share due to a 24.7% growth in net profits.
For the first half of 2017, Boeing (BA) delivered 352 aircraft, ~6.1% less than the 375 aircraft delivered in the first half of 2016.
Boeing has posted a year-to-date return of 63.9%, followed by Raytheon with a 29.9% return and Lockheed Martin with a 24.1% return.
If the US International Trade Commission (or USITC) decides to stick with the decided 219% tariff, it would have to show documentation as to how the tariff was calculated.
After Delta Air Lines received the huge discount from Bombardier, Boeing sold 40 737-700s to United Continental (UAL) at the same 70% discount.
The Canadian Air Force placed an order for 65 Lockheed Martin (LMT) F-35 fighter jets for $30 billion. The CAF canceled the order and replaced it with 18 Boeing CF-18 aircraft for $5.2 billion.
According to Boeing (BA), Delta Air Lines received a 70% discount for the jets, purchasing the CS100 for $19 million apiece.
The US government issued a preliminary ruling in favor of Boeing (BA) and imposed an anti-subsidy duty on rival Bombardier’s C-Series jets. The final decision is expected to come in 2018.
TransDigm Group Inc. (TDG US) is a leading designer and manufacturer of engineered aircraft components for commercial and military aircraft.
In the first half of 2017, General Electric (GE) paid dividends of $4.2 billion and bought back common stock worth $3.6 billion.
General Electric (GE) ranks at the top with a forward dividend yield of 4.0%. Its dividend yield is much higher than the peer group’s average of 2.4%.
In the last ten years, GE has raised its cash dividends to common for seven of those years. The annualized $0.96 per share dividend results in a dividend payout ratio of 61.1%.
On September 7, 2017, General Electric (GE), the global diversified industrial giant, announced a quarterly cash dividend of $0.24 per share on its outstanding stock.
During Jeffrey Immelt’s 16-year tenure as GE’s CEO, the company delivered a return of 1.5% on an annual basis.
General Electric’s 2Q17 earnings per share, on a GAAP basis, fell 53.3% to $0.14 from $0.30 in 2Q16.
On August 1, 2017, John Flannery took the reins as General Electric’s (GE) CEO from Jeffrey Immelt, the firm’s former CEO.
On August 14, Berkshire Hathaway divulged the details of its 13F filed for 2Q17. Warren Buffett’s behemoth firm liquidated its holdings in General Electric (GE) during the quarter.