People have to get around and these three companies are addressing those needs in different ways. Each is a dividend payer that can add income to your portfolio and diversify it at the same time.
1. Bombardier
Bombardier (TSX: BBD.B) manufactures business jets, commercial aircraft, high-speed trains, and public transit vehicles. As of March 31, 2014, the company had a record-level order backlog of $76.9 billion versus $69.7 billion on December 31, 2013. Q1 2014 revenues were $4.4 billion versus $4.3 billion for Q1 2013.
Bombardier is developing the new Learjet 85 business jet. In Q1, the first Learjet 85 flight test vehicle completed its maiden flight (on April 9, 2014), realizing a significant milestone for Bombardier’s aircraft development program. Moreover, its Bombardier Transportation segment received $8 billion in new orders in Q1.
Bombardier is developing the CSeries commercial aircraft. The maiden flights of the first and second CSeries flight test vehicles completed successfully on September 16, 2013 and January 3, 2014.
Bombardier’s dividend yield is 2.60% and its dividend rate is $0.10.
2. Magna International
Magna International (TSX: MG)(NYSE: MGA) operates in the auto parts wholesale industry. The company produces body, chassis, interior, exterior, seating, powertrain, electronic, vision, closure and roof systems and modules. Additionally, it engages in complete vehicle engineering and contract manufacturing.
In 2013, Magna invested $1.4 billion in its business, including fixed assets, investments and other assets. The company’s 2013 total sales were a record $34.8 billion. This represents an increase of 13% over the prior year. In 2013, its European segment’s adjusted earnings before interest and tax increased 127% to $375 million.
For Q1 2014, Magna had sales of $8.96 billion, an increase of 7% over Q1 2013. Net income was $393 million, an increase of $24 million versus Q1 2013.
Magna’s dividend yield is 1.41% and its dividend rate is $1.52.
3. Harley-Davidson
Harley-Davidson (NYSE: HOG) manufactures cruiser and touring motorcycles. The company’s two segments are the Motorcycles & Related Products and Financial Services segments. Financial Services engages in the business of financing and servicing wholesale inventory receivables and retail consumer loans. This is chiefly for the purchase of Harley-Davidson motorcycles.
The company’s business strategy is for the international dealer network to open 100 to 150 new dealerships from the end of 2009 through the end of this year. Through December 31, 2013, Harley-Davidson added 118 new international dealers.
Harley-Davidson’s Q2 2014 net income was $354.2 million, an increase of 30.3% over net income of $271.7 million in Q2 2013. The company achieved consolidated revenue of $2 billion for Q2 versus $1.8 billion in Q2 2013.
Harley-Davidson’s dividend yield is 1.75% and its dividend rate is $1.10.
These three companies have the proper initiatives in place to address 21st century transportation needs. Research the plans each has and what they could bring in terms of income to your stock portfolio.
