Should Harley-Davidson be paying dividends at all right now? Is this bad strategy?
I am currently taking an MBA strategic management class and doing an analysis in Harley-Davidson. Should Harley be paying a dividend or reinvesting its earnings? I am aware that they have slashed the payments dramatically but am sill curious if they should be paying dividends at all during this down period?
Answers
426 points
MONEYTREE answered one month ago …
Well the point of a dividend is to keep shareholders and add more, but if they have a strong balance sheet and they are still making a decent profit overall than it should be ok as long as there at least one step ahead of there future earnings. Reinvesting is probably not a bad idea but as the consumer comes back over time they will probably be in much better shape than now just like alot of companies. I dont own or have never owned this stock and i dont follow it so im just speaking from a dividend stand point just so you know. It just really depends on where the company wants to go in the future and how they will grow and that all comes down to the CEO.
When you invest you should always do your home work and know where the company wants to be in the future and how they will get there, thats the reason for conference calls, to inform investors. The more knowledge you have of a company the better you can understand what there plans are for the future and present ... Good luck jbstack
