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.
If you want to receive the full 24/7 Wall St. 2012 Model Dividend Portfolio you can sign up in the email submission below. Each morning we send our free email list subscribers a snapshot of the key feature stories, the top daily analyst upgrades and downgrades, previews for key events, and many other aspects governing your finances.
JON C. OGG
Smart Investors Are Quietly Loading Up on These “Dividend Legends” (Sponsored)
If you want your portfolio to pay you cash like clockwork, it’s time to stop blindly following conventional wisdom like relying on Dividend Aristocrats. There’s a better option, and we want to show you. We’re offering a brand-new report on 2 stocks we believe offer the rare combination of a high dividend yield and significant stock appreciation upside. If you’re tired of feeling one step behind in this market, this free report is a must-read for you.
Click here to download your FREE copy of “2 Dividend Legends to Hold Forever” and start improving your portfolio today.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.