Boeing’s quarterly dividend
On June 25, Boeing (BA), the jet plane manufacturer, announced a quarterly cash dividend of $1.71 per share on its outstanding common stock. The world’s largest aerospace company’s quarterly dividend is payable on September 7 to shareholders of record as of August 10. Boeing has ~582.6 million common shares outstanding as of June 26. A dividend of $1.71 per share translates to a total quarterly cash outlay of ~$997 million. The defense system provider has paid cash dividends on equity shares every year since 1942.
BA’s dividend history
Boeing raised its quarterly cash dividend in the fourth quarter of 2017 by 20.4% to $1.71, from $1.42 in Q3 2017. It increased its cash dividend in almost every quarter of 2017. In the post-financial crisis era, its dividend growth took a hit for four years. However, it improved its yearly dividend growth rate after 2012.
Boeing’s quarterly dividend grew at a faster pace in 2013. It declared a 50% rise in quarterly cash dividends per share from $0.49 in Q4 2013 to $0.73 in the first quarter of 2014. It has returned $45 billion to stock owners since 2012 in the form of dividends and stock buybacks.
Peers’ dividend growth
Here’s how the dividends of major companies in the aerospace and defense sector (XLI) have grown recently. Lockheed Martin (LMT) announced a quarterly cash dividend of $2 per share for four consecutive quarters ending in the second quarter of 2018. It increased its quarterly dividend by 10% in Q3 2017 to $2 per share. Northrop Grumman (NOC) mandated a 10% increase in its quarterly cash dividend to $1.10 per share, from $1 per share in January.
Defense technology services provider Raytheon (RTN) increased its quarterly per share cash dividend to $0.87 in the second quarter, from $0.80 in the first quarter, which is a ~9% sequential growth. Boeing’s peer General Dynamics (GD) raised its quarterly per share cash dividend 10.7% to $0.93 in the first quarter from $0.84 in the fourth quarter of 2017.
In the next part of this series, we’ll look at Boeing’s dividend payout ratio and its free cash flow.