Harley-Davidson Chopping Its Dividend By 70%

harleycutFrom individuals to big corporations, everybody trying to save and boost the cash flow. As slumping sales sap profit, Harley-Davidson Inc. announced yesterday that it slashed its quarterly dividend by 70 percent, the first cut since 1993. Immediately the stock lost more than 8%. The new dividend will be 10 cents a share, a reduction from 33 cents, and will preserve about $200 million of Harley cash this year. Separately, Harley’s debt rating was cut to A-, a drop of one grade from A, by Fitch Ratings, which said the move affects $3.2 billion of debt at Harley-Davidson Financial Services and $782 million at the parent company.

12 Responses to “Harley-Davidson Chopping Its Dividend By 70%”

  1. 1 Sammy Feb 13th, 2009 at 9:40 am

    HOG trimming its fat.

  2. 2 J Feb 13th, 2009 at 9:49 am

    Stupid…… Cut it to a penny, if Harley wants to say they paid a dividend, but it’s idiotic to pay out any significant cash to shareholders, given the current economic woes Harley faces….

    Pathetic that Harley feels paying out cash is more important that servicing/ retiring some of Berkshires’ 15% notes or fortifying their own freaky credit facility….

    Talk about losing touch with reality…… This drop in the credit rating alone will cost Harley far more than this 10 cents per share they preserved on the dividend….. DUH!

    Who is Harley trying to fool? Maintaining this dividend was done for the benefit of insiders- who are heavily into the common shares- at the expense of the greater good of the company; It’s what the Ford family did to Ford common stock- gee, that worked out really well!

    Rome continues to burn…..

  3. 3 Jeff Nicklus Feb 13th, 2009 at 10:43 am

    Why are these idiots paying ANY dividends at all?

    Over & Out,


  4. 4 Road12 Feb 13th, 2009 at 11:15 am

    Jeff… agreed with you. Either you pay full dividend or you don’t. Cutting 70% of it doesn’t make sense… my HD shares went from $60 to $18… But you have to pay something to the insiders or they would (too) leave the company. Maybe they can all work for Ford and try to sell that new 2010 truck 🙂

  5. 5 Rock Star Feb 13th, 2009 at 1:05 pm

    this is dead money for the next decade
    sell that junk & take your wife to one of my concerts

  6. 6 rideout Feb 13th, 2009 at 5:40 pm

    Rockstar your stupidity is consistantly impressive

  7. 7 Nicker Feb 13th, 2009 at 8:32 pm

    Hmmmm…. Moron-nomics…???
    Making no money, but paying a dividend….
    Sorta like paying a bonus in a down-market……


  8. 8 fuji Feb 13th, 2009 at 10:11 pm

    Mr. Buffett is not alone, Davis Selected Advisers LP (HOG’s biggest investor, owns 10.2% of the common stock , purchased $600 million worth of HOG 5-year senior unsecured debt bearing interest at 15% making them [ Davis ] a bigger holder of HOG than Buffett.

    Buffett And Davis drives the golden nail in the preverbial coffin. More and more people, everyday investors are starting to pay for their investment loss in the common stock. Be loyal but don’t expect the dividend, your choice.

    Don’t run out and get another Hog tattoo soon unless you put it in the palm of your hand.

  9. 9 Road12 Feb 14th, 2009 at 11:39 am

    People will still buy HD stock… I know I will. No matter what, the company is strong. However, I don’t think we will ever see another HD share at $60. But if you buy some now at $15 and they even go to $40 4 years from now, it’s not a bad investment.

  10. 10 Boss Hawg Feb 15th, 2009 at 3:11 pm

    Buy land if you want to invest with a solid return!

    Boss Hawg

  11. 11 fuji Feb 15th, 2009 at 9:05 pm

    Boss Hawg

    Good comment some get it some don’t.

    Be sympathetic for the brand but not for the [ PIDE PIPERS ] keepers of the brand.

    p/s good web site .

  12. 12 T.R. Hill Feb 20th, 2009 at 9:23 am

    What it all comes down to is GREED, period

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