Dividend seekers don't usually expect to land a highflier when
buying an income stock. ButBoeing (
) shareholders are getting that rare combination -- at least this
Despite problems with its 787 Dreamliner, federal budget
uncertainties and recent labor union woes, the jet maker has
boosted its dividend and seen its share price take off.
Its 777X wide-body plane was a big hit last month at the Dubai
Airshow, where Middle Eastern carriers placed a flurry of orders
for the long-haul aircraft. And last week, China's Cathay Pacific
Airways ordered 21 of the jets.
Where the 777X will be built is still in question. Washington
state union workers vote Jan. 3 on the latest contract offer
Boeing has made to keep production there.
The Chicago-based company last week hiked its quarterly
dividend payout by 50% to 73 cents a share. That works out to an
annual payout of $2.92, for an annualized yield of 2.1%, slightly
higher than the S&P 500.
Boeing has paid out a dividend for 71 years now. It started
with an annual payout in 1942 before switching to quarterly
payments in 1954. Since then, the dividend has trended mostly
higher, though it held steady at 42 cents a share from 2009 to
The company reported low-double-digit profit growth the past
three quarters after two quarters of declining earnings. Analysts
expect a 20% jump in EPS in Q4.
Its three-year Earnings Stability Factor of 5 on a 0-to-99
scale indicates steady growth, though its five-year factor of 50
includes a big drop in 2009 profit.
Solid overall fundamentals and a surging stock performance
help Boeing earn a 94 Composite Rating. Shares have soared 82%
this year, outpacing the S&P 500's 29% gain.
Boeing also boosted its stock buyback program by $10 billion,
which is in addition to the $800 million authorized in its
current repurchase plan. It expects to buy back shares over the
next two to three years.