Over the long-term, investors look for a healthy mix of both capital appreciation with a stock as well as yield. Even the most in need of income including retirees do not want to have a majority of their equity eaten away by losses, as such a situation would mean these folks would likely need to sell securities at a loss to make up any income lost by situations such as dividend cuts.
Boeing Co. (NYSE:BA) is a company I have followed for some time, one which has a very strong focus on operational excellence and improving performance and margins over time. The business’ margins have remained strong and Boeing continues to produce some of the best quality planes in the world, for both commercial and military applications.
One of Boeing’s best assets has historically been its order backlog, one which remains robust and continues to support the company’s future revenue and earnings flow for years into the future. Having a robust backlog of orders allows Boeing to shift its focus to profitability and operational efficiency, two key drivers for long-term growth and income generation over time.
Boeing is a company I would recommend for a retirement portfolio because of the excellent mix of growth potential and the potential for capital appreciation, combined with a healthy and growing dividend. Currently, Boeing’s dividend yield sits around 3%, however it was much higher previously before the company’s stock “took off” over the past year (see what I did there?).
