May 2, 2012
The following video is part of our "Motley Fool Conversations" series in which industrials editor/analyst Isaac Pino and industrials editor/analyst Brendan Byrnes discuss topics across the investing world.
In today's edition, Isaac and Brendan continue their series "1 Dividend to Buy, 1 Dividend to Sell." From Isaac's perspective, RadioShack's dividend could tempt investors with its 9.3% yield; but, as they say, "Buyer, beware." This retailer has seen better days, and the outlook is dreary. A reliance on foot traffic and sales related to mobile devices seemed to hold promise until Apple set its foot down. Apple commands the mobile market, pushes subsidies higher, and crushes commissions for retailers like RadioShack. Look for continuing declines in comparable-store sales from the Shack due to a fledgling business model. On the other hand, Boeing operates in a duopoly with Europe's Airbus in the aerospace market. Boeing's backlog continues to grow and the company is doing a better job fulfilling those orders in a timely manner. The company has figured out how to boost production of the Dreamliner to three-and-a-half planes per month, and is poised to surpass Airbus in plane deliveries for the first time in a decade. Airline orders tend to grow at 1.5 times GDP over time, so fast-growing economies will spur growth in this sector going forward.
Boeing's dividend, overall, appears more attractive thanks to its position in the aerospace market and sound business model. Investors looking for strong dividends backed by great companies should look no further than our recent Motley Fool report entitled "Secure Your Future With 9 Rock-Solid Dividend Stocks." You can access your complimentary copy today at no cost! Just click here to discover the winners we've picked.