MILWAUKEE - Harley-Davidson, Inc. (NYSE:HOG), the renowned motorcycle manufacturer, announced on Wednesday that its Board of Directors has approved a quarterly cash dividend of $0.1725 per share. This dividend will be distributed on December 23, 2024, to shareholders who are on record as owning shares by December 10, 2024.
The company, which is also the parent of Harley-Davidson Motor Company and Harley-Davidson Financial Services, has a long-standing tradition of returning value to its shareholders through dividends. The declaration of the dividend demonstrates the company's commitment to its investors and its confidence in the financial stability of the firm.
Harley-Davidson's decision to issue dividends is a signal of its financial health and the Board's belief in the company's ability to generate cash flow. Dividends are typically paid by companies that are well established and have a consistent record of profitability.
The announcement is particularly relevant for investors and market analysts as dividends are considered a key component of stock ownership, providing a steady income stream and often reflecting the company's corporate health. The declared dividend may also influence the company's stock performance on the New York Stock Exchange, where Harley-Davidson is listed.
As the motorcycle market evolves, Harley-Davidson continues to adapt its business strategy and product offerings to maintain its position in the industry. The dividend declaration is a part of the company's financial management practices and reflects its ongoing efforts to manage capital effectively.
This news is based on a press release statement from Harley-Davidson, Inc. and does not include any additional analysis or opinion. It is intended to provide shareholders and the wider financial community with the latest information on the company's dividend policy.
In other recent news, Harley-Davidson faced significant challenges in the third quarter of 2024, as reported in their earnings call. The company experienced a 13% drop in global retail sales and a 26% decrease in consolidated revenue. Earnings per share also declined by 34% to $0.91. Despite these setbacks, U.S. retail sales remained fairly stable, decreasing by only 1% due to nearly 10% growth in the touring segment.
Citi, in its recent analysis, reduced the price target for Harley-Davidson from $39 to $34 while maintaining a neutral rating. The firm cited concerns regarding high inventory levels and a history of persistent retail sales declines as reasons for the adjustment. Furthermore, Citi expressed reservations about Harley-Davidson's ambitious margin targets for 2025 and 2026, suggesting they might be set too high.
As part of its strategic response to these challenges, Harley-Davidson is implementing measures to improve profitability and dealer support, with a focus on reducing inventory and cost management. The company plans to reduce dealer inventory by 20% by year-end. These are some of the recent developments for Harley-Davidson.
InvestingPro Insights
Harley-Davidson's recent dividend announcement aligns with its strong track record of shareholder returns. According to InvestingPro data, the company boasts a dividend yield of 2.06% and has maintained dividend payments for an impressive 32 consecutive years. This consistency is further underscored by an InvestingPro Tip highlighting that Harley-Davidson has raised its dividend for 3 consecutive years, demonstrating a commitment to increasing shareholder value over time.
Despite facing challenges in the current market environment, with revenue growth declining by 6.3% over the last twelve months, Harley-Davidson maintains a solid financial position. The company's P/E ratio of 7.6 suggests that it may be undervalued compared to its peers. This is reinforced by another InvestingPro Tip indicating that the company is trading at a low earnings multiple, which could be attractive to value investors.
For those interested in a deeper analysis of Harley-Davidson's financial health and future prospects, InvestingPro offers additional insights. The platform provides 10 more tips for HOG, which can help investors make more informed decisions about the company's stock. These additional tips cover various aspects of Harley-Davidson's financial performance and market position, offering a comprehensive view for potential investors.
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