Understanding the multiple of how many years' worth of earnings one will need to pay to acquire a stake in a given company is a meaningful exercise for those investors who are keenly focused on the size and frequency of dividend distributions over time.
Late last year, Boeing's management team announced a 20% increase to the company's dividend distribution in addition to a share buyback program which was authorized at $20 billion, a move which significantly boosted the company's share price.
Since the announcement of the combined dividend and buyback increase, shares of Boeing have increased more than 30%, as long term investors have bought into the value creation of Boeing's management team.
The company currently yields approximately 2% (down significantly since the company's most recent 52-week bottom around the time of the aforementioned dividend announcement), a modest yield, but one which investors can count on growing over time.