Harley Davidson Increases Dividend 10%

A public company raises a dividend when things look good, or to support a declining share price. And only if it has enough money to do so …Harley Davidson (HOG) announced a 10% increase in its quarterly cash dividend to 33 cents per share versus 30 cents in the same quarter last year. In spite of this double-digit dividend increase, the company is seeing “softness” in the number of motorcycle units sold. As you know HOG stated it would close plants and layoff employees. The goal is to reduce motorcycle shipments by at least 23,000 units. Harley-Davidson.


4 Responses to “Harley Davidson Increases Dividend 10%”

  1. 1 Nicker May 1st, 2008 at 12:31 am


    “…seeing “softness” in the number of motorcycle units sold…”
    “… stated it would close plants and layoff employees…”

    OK, so lowing overhead would compensate for lost sales to save ya from going under.
    Sounds reasonable.

    But: RE:
    “…raises a dividend …. only if it has enough money to do so …”
    “…announced a 10% increase in its quarterly cash dividend …”

    Why jack up stock prices if you don’t need capital to expand…(and in fact are contracting)..???

    Is-zis about management stock holdings…..????

    Just a thought.

  2. 2 Rodent May 1st, 2008 at 8:56 am

    Insider trading is public knowledge and by laying off 700 people they have lots of money on hand. Wall Street hates to hear about cutting production so to soften that news they increase their divedend one time. I didn’t hear about their ivory tower taking a cut in pay. Did they? Should they? Will they?

  3. 3 J May 1st, 2008 at 2:19 pm

    Not really that surprising; HOG is a cash-flow machine, via merchandising. They’re paying out retained earnings, rather than reinvest them into what? Line workers to stand around and do nothing as production cuts back? Why hassle with building bikes when you can sell t-shirts?

    The shareholders own the company, and the shareholders demand results. That said, I’d still like to better understand why the CEO’s total compensation package this year was four times his base salary- pretty fat reward, in light of a very poor fiscal year which lead to some very questionable credit reorg;

    What marginal revenue has Zeimer actually brought to the table? Oh ya… Freaky-deaky 130% financing, nice job…..

    The board needs to wake up- getting too incestuous in the Ivory Tower (I like that one, Rodent!)

  4. 4 Nicker May 2nd, 2008 at 1:15 am

    If the product market goes soft, won’t the T-shirt market eventually follow?
    Too bad the stockholders don’t take on the board for maleficence.


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