A steady stock price is welcome as investors continue to collect a reliable dividend. "Ownership data provided by Refinitiv and Estimates data provided by FactSet. The Coca-Cola Company (KO) Dividend yield on cost: 1 year, 3 year, 5 year.
"In December, Moody's downgraded Boeing's debt one step to A3 and warned that the aerospace giant's "reputation can be adversely affected as the grounding extends. The exact cost of the 737 MAX grounding is yet to be seen, but analysts are estimating that it could cost Boeing around £5bn. With the 737 MAX disaster still unresolved and ongoing delays to their 777X program, how can Boeing afford to maintain investor payments at the same level?The quarterly payment for the same period last year was $1.42, and the payment just before the new year was $1.71. With the MAX grounded and the 777X delayed, how are dividends not going down? The information and content are subject to change without notice.Get instant access to exclusive stock lists, expert market analysis and powerful tools with 5 weeks of IBD Digital for only $5!The SEC filing containing Boeing's annual report showed a $108 million charge in Q4 for the Air Force's KC-46 tanker. Authors may own the stocks they discuss. In order to conserve cash, they may well be suspending share buybacks until the MAX is back in service.Secondly, with such a big part of their income absent, analysts have estimated that Boeing will need to borrow around $1bn to pay dividends. Boeing's debt was downgraded for the second time in as many months as a broad array of costs piles up, including a new one for the KC-46. Free Weekly Dividend Newsletter: Free Dividend Newsletter Gain access to weekly reports featuring our proprietary DividendRank lists broken down by the top ranked stocks in each of 18 categories/industry groupings. That wasn't disclosed in the Q4 earnings press release on Wednesday. "In fact, Moody's added that its latest downgrade also reflects what it calls "an aggressive financial policy," namely its decision to maintain the dividend. Boeing stock fell. Providing commentary for outlets including the BBC, CNBC, and others, she works closely with IATA, AviaDev and various airlines and suppliers to get the inside track on the global marketplace.Even more puzzling, the agreed share payout for the next quarter is equal to that of the first and second quarters, meaning the MAX debacle hasn’t hit Boeing’s share price at all – how can that be?Sign up to our daily aviation news digest. This means that the stock has risen, despite the massive amounts of negative PR around the Boeing company recently.Boeing is likely to be maintaining its comfortable dividend payouts by doing two things. "We now anticipate that the road to restoring the MAX production system and Boeing's credit profile will run into 2023 and will be much costlier given significant negative free cash flow near $10 billion in 2020, even if the FAA ungrounds the aircraft by mid-spring. dividend calendar,ex-dividend calendar,ex-div calendar. At $2.055, it’s the same level of payout as investors received in the last two quarters.
Realtime quote and/or trade prices are not sourced from all markets.In an SEC filing on Friday, Boeing also warned that if the 737 Max remains grounded for an "extended period of time," the company could see "reductions to backlog and/or significant order cancellations. For the company, it’s crucial to maintain investor confidence, which means keeping those dividend payments rolling, even if they’re a bit tight for cash themselves.Despite this, investors still tout Boeing as a strong buy, thanks to the company’s solid position in the aerospace sector.
Once the MAX returns to service, Boeing stock is expected to exceed $450 a share, despite the potential cost to the company of the grounding.Editor - Joanna has worked in publishing for more than a decade and is fast becoming a go-to source for commercial aviation analysis.
Firstly, the company normally returns most of its free cash flow (around 95%) to its investors via dividends and share buybacks. Boeing had to halt deliveries repeatedly last year after debris was found in delivered tankers.Learn how you can make more money with IBD's investing tools, top-performing stock lists, and educational content.The company has already booked 737 Max-related costs of more than $18 billion, and Boeing's other business units making further demands on available cash.Get market updates, educational videos, webinars, and stock analysis.The SEC filing Friday said charges for that program totaled $489 million last year.
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"Boeing's Q4 earnings indicate significantly higher cash burn in 2020 than previously anticipated, increasing reliance on debt for funding the impact of a lower-for-longer recovery of the Max program," said Jonathan Root, Moody's lead analyst.
The KC-46 is more than two years behind schedule and has now cost Boeing over $3.7 billion in charges for cost overruns. Moody's estimates about $12 billion of the roughly $27 billion increase in debt between the end of 2018 and the end of 2020 will have gone to shareholder returns.And yet another downgrade could happen soon.