Boeing Co. (NYSE: BA) was not featured as one of our model stocks in the 24/7 Wall St. 2012 model Dividend Portfolio and it was not even featured as a DJIA soon to raise its dividend. Many others were, but now Boeing is surprising us with a dividend hike.
The aerospace and defense company is showing that it has full faith that the 787 Dreamliner is going to contribute handily to the bottom line for years and years. Boeing’s CEO Jim McNerney announced the declaration of a $0.44 per quarter per common share dividend.
While the company announced that reports that this increase is by about 5% over its prior $0.42 dividend, there is a lot more to the story than just an ordinary dividend hike. This was the first hike since it raised its dividend during the recession when it paid out the first dividend of $0.42 in February 2009.
Prior to what will have turned into a 3-year dividend hiatus, Boeing used to raise its dividend annually… 2009, 2008, 2007, 2006, 2005… The last time it kept its dividend on hold for so long was when the payout was $0.17 per share per quarter from February of 2001 to February of 2004.
Boeing shares are still down close to 2% with the broader market today at $70.62 versus a 52-week range of $56.01 to $80.65. The new adjusted yield would represent a yield of 2.5% for new investors today. Thomson Reuters has consensus estimates of $4.46 EPS for 2011 and $4.95 EPS for 2012.
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JON C. OGG