With consumers that have money to spend and the country open again, the venerable motorcycle maker is a great bet for the rest of 2022 and beyond. Harley-Davidson Inc. (NYSE: HOG) manufactures and sells custom, cruiser and touring motorcycles. The company operates in two segments, Motorcycles and Related Products and Financial Services.
Its Motorcycles and Related Products segment designs, manufactures and sells Harley-Davidson motorcycles, including cruiser, touring, standard, sportbike and dual models, as well as motorcycle parts, accessories, general merchandise and related services. This segment sells its products to retail customers through a network of independent dealers, as well as e-commerce channels in the North America, Latin America, Europe and elsewhere.
The Financial Services segment provides wholesale financing services, such as floor plan and open account financing of motorcycles, and parts and accessories. It offers retail financing services, including installment lending for the purchase of new and used Harley-Davidson motorcycles, as well as point-of-sale protection products, comprising motorcycle insurance, extended service contracts and motorcycle maintenance protection. This segment also licenses third-party financial institutions that issue credit cards bearing the Harley-Davidson brand.
Investors now receive a yield of 1.69%. The expected hike in the dividend is to $0.21 per share from $0.15.
The BofA Securities price target is $70, well above the $51.70 consensus target. Harley-Davidson stock traded at $36.20 Monday morning.
Monolithic Power Systems
This off-the-radar play has remained a favorite over the years at Truist. Monolithic Power Systems Inc. (NASDAQ: MPWR) designs, develops and markets integrated power semiconductor solutions and power delivery architectures for consumer, industrial, computing and storage, and communications market segments.
The company offers direct current (DC) to DC converter integrated circuits used to convert and control voltages of various electronic systems, such as portable electronic devices, wireless LAN access points, computers, monitors, automobiles and medical equipment.
The company also provides lighting control integrated circuits for backlighting that are used in systems, which provide the light source for LCD panels in notebook computers, monitors, car navigation systems and televisions, as well as for general illumination applications. In addition, it offers alternating current (AC)/DC offline solutions for lighting illumination applications and AC/DC power conversion solutions for various end products that plug into a wall outlet.
Shareholders now receive a 0.61% dividend. The company is expected to lift the dividend to $0.70 per share from $0.60.
The $613 Truist price target compares to the $583.50 consensus target on Monolithic Power Systems stock. Shares changed hands at $401.30 early Monday.
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