If you want to see a stock chart that is a pristine example of a bullish bias, take a look at the stock chart of Boeing (BA 289.88, +6.77, +2.4%). The Dow component is up 82% year-to-date, having risen steadily since day one of 2017. It is indicated higher again this morning following some news from the company that is a testament to its operating strength and upbeat outlook.
After Monday's close, Boeing gift wrapped a few presents for shareholders in the form of a dividend increase and a new share repurchase program.
Specifically, Boeing's Board of Directors approved a robust 20% increase in the quarterly dividend to $1.71 per share and authorized an $18 billion share repurchase program to take the place of a $14 billion authorization approved in December 2016. The latter has $4.8 billion remaining on it, so Boeing effectively added another $13.2 billion to the share repurchase program.
While there wasn't a specific end date attached to the new buyback authorization, Boeing expects the repurchases made under the plan to occur over the next 24 to 30 months. At the current stock price, Boeing could repurchase approximately 5% of its outstanding shares.
The new dividend, meanwhile, will be payable on March 2 to shareholders of record as of February 9, 2018. Based on the new dividend payment, Boeing's dividend yield is 2.42% compared to the 5-year note yield of 2.17% and the 10-yr note yield of 2.39%.
According to the company's press release, Boeing has increased its quarterly dividend more than 250% over the past five years.
That's a healthy raise indeed for income-oriented shareholders who have gotten the added benefit of huge price appreciation over the same period. To that end, shares of BA are up roughly 280% over the last five years, underscoring the tremendous total return opportunity enjoyed by the company's shareholders.
There could be more where that came from, too, if Congress approves a tax bill that cuts the effective corporate tax rate and significantly reduces the repatriation tax, as those reductions for multinational companies will help boost earnings and corporate cash flow that are the mother's milk of dividend payments and share repurchase activity.