Welcome back, you key players were missed. now let's fix the $$$ dividend issue
I wonder how you feel about spending our new found $$$ (as the result of good Mgt)..at 2 cents per share the dividend in my mind is the issue to address. Not sure we should be buying back, or spreading incentive and bonus money around until we get a little (again). The total dividend payment is 300M x ,02 cents..about 6 M.....if you can take a look at the discretionary funds spread around ....not to be negative because as you know we were at $3 not to long ago....but ...think the split/sharing of the "extra" dollars should include us. Several similar firms use this as the criteria ....the dividend must exceed more than corporate divide in cash and shares.
As you know I am long,long TXT think we have a good team there and they need our suggestions.
Dividend increase is long overdue. Profit sharing is the only internal justified distribution for hard-working American workers. On top of that, corporate expenses are going up. Tells me the "good" corporate team needs to wake up, watch those expenses and take care of us real financiers of their operations through increased dividends.
Krug, dividend increase, desirable as it may be, is not going to happen until Textron winds down its non-captive obligations. No doubt dividend increase to a number closer in line with its competitors will help shareholder value and likely help break through resistance around $28-$29 range, investing in product development for solid future growth is the better focus than distributing cash and although rewarding corporate officers during these lean times is absolutely not right while ignoring shareholders. Its hard to argue with that strategy as long as balance sheet stays healthy and share price improves. There is no where to go for yield these days and Textron recognizes that fact but I think their strategy to delay dividend increase is sensible. Give it a couple of quarters. You will smile more early next year with a $45 to $55 share price than a 2 or 4 or 8 cent dividend.
... but their balance sheet is markedly improved ... cash is up $507MM to $1378MM, total mfg debt is down $158MM and finance debt is down a whopping $834MM ... seems like they can afford some increase ... agree re your timing of a couple qtrs ...
Totally agree ... look at the dismal yield v. competitors:
and peer-group multiples average about 15X compared to TXT's 12X
I seem to recall you wrote TXT BOD or mgmt before(?) and I tried twice without success but would not hurt.
I would think increasing to an annual rate of $.32 starting in a couple quarters is minimal, then doubling that in a year, to the 2008 level of $1 the following year ...