Harley-Davidson has just announced that it will be giving out a 10¢/share dividend for the third quarter of 2010. Being paid on October 15th to anyone who owns Harley-Davidson stock (NYSE: HOG) on October 1st, 2010, holders of HOG common stock will get a chance to be rewarded for investing in the Milwaukee brand. It’s not clear at this time if Harley-Davidson intends to keep the cash dividend for future quarters, or if this is one-quarter only event.
With HOG currently trading at $28.43/share, this announcement means essentially an automatic 1.2% investment gain for stock owners, however contact your financial advisor before placing any orders…you shouldn’t take stock advice from a motorcycle blog.
The vote made by Harley-Davidson’s Board of Directors to institute the stock dividend comes on the heels of the company renegotiating its labor agreements with its unionized Wisconsin work force. It also comes after Harley-Davidson parted ways with its long-time advertising cohort Carmichael Lynch. Harley-Davidson stock is down 1.42% at the time of this writing, and this announcement.