Dividends and Boeing post 1st quarterly profit in nearly 2 years

2 years ago there were crashes of the new Boeing 737 Max, given the passenger airline market is dominated by 2 companies – Airbus and Boeing this was not a good thing. Boeing was fortunate that COVID basically stopped travelling by the general public as they had to redo the software of the Max and be recertified for the planes to fly.

In an article by Ankit Ajmera and Eric M Johnson of Reuters, Boeing posted its first quarterly profit as deliveries of the Max 737 gained traction. For the past 2 years, Boeing has relied on its defense and service sales to keep the company running till it could sell passenger planes again.

The good news CEO David Calhoun told employees rather than reducing the workforce to 130,000 people the company will be keeping staffing at 140,000 people. The company still has concerns including with the 787 program and China has not certified the Max 737, but Mr. Calhourn is not too concern until mid 2022. If the Chinese are not buying, he and the lobbyists will be speaking to President Biden. (in a normal year, Boeing is one the biggest contributors to the exporting GNP.

Linking to dividend paying stocks, Boeing is fortunate to be diversified with passenger planes and military contracts. but the issue is a major setback took Boeing 2 years to recover. If you own stock in a company and it has a correction, it will take time to recover. A strategy is to decrease the number of shares you own, buy alternatives and use the money to slowly buy more shares in the company at a lower price. Investing for dividends means time is on your side, use time in your investing strategies.

There are more questions than answers, till the next time – to raising questions.

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