Boeing Co. is a leading manufacturer of commercial aircraft, military aircraft as well as variety of command and control and advanced radar systems.  The company has grown profits and dividends at a 10-12% annual rate over the past 10 years earning a return on equity in excess of 20%.  

The key factor in BA’s financial performance of late has been the delay of the 787 Dreamliner which has resulted in increased costs and order cancellations.  However, deliveries should begin in 2010.  Despite the aforementioned order cancellations, current backlog currently stands at $328 billion, nearly five years of sales, approximately 90% of which is from foreign carriers that benefit from financial backing of their governments. Demand should remain strong as there is an underlying need for new more efficient jetliners.

     Boeing is rated A+ by Value Line, has a 96% debt to equity ratio (though this is largely a function of accounting treatments) and its stock yields 3.5%.

Statistical Summary

                 Stock      Dividend         Payout      # Increases   
                Yield      Growth Rate     Ratio       Since 1999
 
BA             3.5%           10%            72%*             8
Ind Ave      3.1               9                21                 NA  

                Debt/                    EPS Down       Net        Value Line
             Equity         ROE      Since 1999      Margin       Rating

BA            96%*          46%            4                5%           A+
Ind Ave     31               14              NA              8             NA

*due to the accounting treatment of the first three 787 Dreamliner, which were expensed as R&D

   Chart

    Note:  Until yesterday, BA was in an up trend off its March low.  However, it has not successfully challenged the down trend off it s September 2007 high (red line).  The blue line is the lower boundary of an up trend dating from 2003.




http://finance.yahoo.com/q?s=BA
10/09

     News on Stocks in Our Portfolios

    VF Corp (Dividend Growth and High Yield Portfolios) reported third quarter earnings per share of $1.94 versus expectations of $1.95 and $2.10 recorded in the comparable 2008 quarter.

    Verizon (High Yield Portfolio) reported third quarter operating earnings per share of $.60 versus expectations of $.69 and $.66 reported in last years’ third quarter.