Growth companies with solid dividends are hard to come by, and Boeing Co. (NYSE:BA) has fit the mold over the past five years. Appreciating nearly three-fold over this time period, Boeing has maintained a dividend which has hovered around 3% while taking advantage of a worldwide increase in air traffic as well as ageing fleets and travel growth in many parts of the developing world, rapidly increasing the demand for airplanes.
Boeing’s order backlog is impressive, with more than $462 billion in firm orders scheduled as well as an additional $18 billion in unsecured orders to be shipped out over the coming years.
With nearly half a trillion dollars sitting as a nice order backlog buffer, and “only” $95 billion in revenue per year, Boeing has nearly five years’ worth of orders ready to go today, meaning the company’s profitability moving forward will only be constrained by Boeing’s ability to control costs and maximize volume – a problem many companies could only dream of having.
Shareholders looking for a growth gem have found one in Boeing, however, what is interesting to many long-term investors, including myself, is Boeing’s rather large dividend compared to other growth-focused firms.
With a dividend yield currently sitting around 2.8% (and it used to be much higher before the run up in Boeing’s stock recently), income-focused investors can buy Boeing’s growth and essentially receive the dividend for free – not too bad of a deal.
Invest Wisely, my friends.
