Harley-Davidson Will Pay You To Buy Its Stock

09/16/2010 @ 2:40 pm, by Jensen Beeler8 COMMENTS

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.

Source: Harley-Davidson

  • Greg

    This sounds like a desperate attempt to juice up cash flow and not worth the risk.

  • Kevin White

    On ex-dividend date, the stock is automatically reduced in price by the amount of the dividend. There’s no free money.

  • irksome

    Frankly, I’d be hard pressed to take HD stock for free. In addition to promulgating a line of archaic and anachronistic bikes to an ever-aging group of wanna-be pirates who’re closer to trading for an RV and a walker than a new bike, in addition to screwing over the last great American motorcycle company (Buell) and focussing their resources on becoming a merchandising firm that just happens to still produce motorcycles, they’ve just blackmailed their unions into accepting cuts, lay-offs and $16 an hr. “casual employees” (their term) instead of axing the execs who’re responsible for their imminent demise in the first place. Tough economy? Triumph has been turning a sizable profit all year.

    $16 an hr casual employees (w/o benefits!) will produce $16 an hr casual bikes. Way to screw your customer base. Invest in HD? I’d rather invest in a social disease; I may get f**ked but at least I’m getting a return.

  • Greg

    Alright, I’ll come right out and say it. I hate HD. I hate the culture, the loud bikes, the slowness, the sloppiness, the white trash who think they’re better than everyone else, the machismo, the fact that there are fewer Honda Civics on the road than HDs (I live in MKE), the tats, the leather, the goatees, the beards, long hair, fat, under-dressed cupcakes, the fat guts, the skynyrd, the union jack, the fact that they shit on their union, the fact that they’re low tech and look all the same, that you have to wear all HD branded crap to ride one…..oh jeez, I could go on, and on. I’ll just continue to laugh and ride my Duc through the streets of MKE with the wind, and my enviable L-Twin sound!

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  • Tim

    Sorry to hear that Greg, I guess the big difference is that my friends and I would ride with ANYONE. Ducati, 1974 Honda, whatever. You should try talking to a few, often you will find these riders are weekend warriors out to let off some steam and are a great group of people. We are all riders.

    Oh and i LOVE Ducattis.

  • Greg

    Hang out in MKE for a while, it seems you get nothing but attitude. I noticed on a recent trip to San Diego that there were groups of riders with different bikes. Here, it’s HD with only HD about 99% of the time.

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