***The company is Harley Davidson*** What has occurred with company’s dividend p
ID: 2742452 • Letter: #
Question
***The company is Harley Davidson***
What has occurred with company’s dividend payout, dividend yield, and dividend per share over the past three years? Do you have any explanations for what has occurred?
How does your selected company’s dividend payout, dividend yield, and dividend per share compare to other companies in its industry? Has the company’s dividend strategy been similar to other companies in its industry?
You are now to use Excel and plot your selected company’s earnings and dividends over the past three years. Do you notice any patterns?
What is your estimate for your company’s dividend per share next year? Please justify why you made that decision.
Now locate a company that has reduced or eliminated its common stock cash dividend over the past year. Why did the company reduce or eliminate its dividend? What has happened to the company’s stock price over the year?
Explanation / Answer
Company has paid same dividend for the following years as asked and rise also in the same has been consistent over this period although Q3 and Q4 has shown the problems for the company as it is not able to sustain the income as generated the earnings which they have generated during this period. But as the name of the company in the market is good as well as to maintain the interest of the shareholders, they must have paid the shareholders although company in the manufacturing sector needs to make high provision for the working capital, then also figures generated is quite satisfactory for the company and dividend is paid after settling all debtors, debentures and preference stock which shows that company is paying them well and it is a good sign for the company and the investor's at large.
Company is following conservative approach at the same time it does not want it's shareholders to loose, company believes in retaining profits as well so it allocates some proportion for dividends, but as it escalates Q3 and Q4 to show weak demands for motor cycle or Debt repayment also takes place in this time year same has been the cause and the effect is watchable. So based on the analyses, it must have done the same. Debt-equity ratio has risen and the number of shareholders has also fallen so either company has bought back the shares or it must have dilluted the holding's and as result earnings per share are also increasing. This may be because of the fact that japenese yen weakining and presence of them in the market may have allowed them to sale their asset at competetive rate's as a result share of profit for harley is affected.
Other companies are also paying the Dividend but in terms of Dividend yield% harley is still ahead only after piaggio and c.company, so it shows that company is still viable competition for the competitors and it cannot be ignored that is harley is still a force to reckon with.
To an extent but not fully, as other companies are also stagnant dividend's but not much change in terms of shareholding is visible as harley davidson.
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