Investors with Boeing stock have had a rough since the end of February. The stock price at one time had crossed $440 a share. Then fell a few months later to under $338 a share. As the stock started to recover more bad news has come for Boeing. Boeing in on the Hook for an addition 5 billion that they will have to pay for the 737 Max delays. Will they recover from this?
Boeing stock was founded over a century ago. The company came into existence in 1916 in Chicago, Illinois and the Initial Public Offering (IPO) was floated on January 13, 1978. The company works jointly with its subsidiaries for designing, development, manufacturing, services, sales, and support for the different airline systems worldwide. These include the satellites, human space flight, launch systems, military aircraft, commercial jetliners, and various services worldwide.
The four segments in which Boeing stocks operate are:
Commercial airplanes: The commercial range of airplanes provide the jet aircraft for passenger, fleet support services and cargo requirements.
Space and Security (Defense Services): It engages in the R & D, production and modified manned and automated military aircraft and weapons, intelligence systems and strategic defense platform like a command, control, defense systems, computers, intelligence, IT solutions, reconnaissance and satellite systems. This is a very wide range of services provided by the company.
Boeing Capital: This segment offers the financial management and exposure services for finance leasing and operations held for sale or re-lease investments.
Global Services: Global services segment includes the products and services having the inclusion of engineering, maintenance, logistics management, supply chain, upgrades and conversions, pilot maintenance training systems, data analytics, defense customers and technical documentation services.
Boeing Stock went all over the news after the terrible tragedy of the Ethiopian Airways crash on March 10 this year and the Lion Air Crash on 29 October 2018. Both these crashes involved the new 737 MAX 8 aircraft from Boeing. This was not positive news for Boeing of course and the general airline industry as well. The investigators are still doing the work for this and the upcoming news will have a huge impact on the stock prices.
Boeing present status
Boeing is still hanging at a price of around $370 and could even go up in the coming phases. The industry is vast and there are other booming segments associated with the company. Also, the company is strong enough in the financials and pays a handsome dividend with the consistent 7 years of growth. The most recent dividend announced in December 2018 is 34.5 cents per share. The stocks are rising with the growing times. The quarterly dividend is quite fascinating for the stock owners. The compounding can enhance the long-term investments towards a big-time success.
Splitting of Boeing stock
Boeing stock has split for 6 times since it has gone public in 1978. There are a variety of reasons for the companies doing the stock splitting and it even makes the stocks more attractive. The splits of Boeing have mostly been 1.5 to 1 which means that for 2 stocks, there would be 3 shares given after the split.
Boeing is one of the big names in defense, space, and commercial air industries. They have running orders for the airplane builders and there are billion of contracts in government defense contracts. The company has other divisions and are excellently working in wind turbine manufacturing. The commercial division of the company is mostly involved with aviation and defense but the other segments are lucratively seen by the stock owners for the stock upliftment.