StockCall Study on Polaris Industries and Harley-Davidson: Recreational Vehicle Companies Raise Dividends
LONDON, February 14, 2013 /PRNewswire/ --
The recreational vehicle industry is seeing a revival. There are mainly two types of companies in the market: Pure play RV companies and the larger conglomerates with RV business units. These companies differ in their strategies and risk profile. Polaris Industries Inc. (NYSE: PII) acquired brands like Indian to consolidate its position in the U.S. markets. At the very same time, iconic U.S. brand Harley-Davidson Inc. (NYSE: HOG) is curtailing its costs to sustain its margins and profitability. The company is also looking to implement new marketing policies. StockCall's free coverage on Polaris Industries and Harley-Davidson is available upon registration at
Polaris Industries Increases Dividend
Polaris Industries recently upped its dividend payment by 14 percent. The company paid 42 cents per share in cash dividend, instead of 37 cents apiece. With this increase, the company's current dividend yield stands at 1.98 percent, making it an attractive income stock. Register now and get access to the free analysis on Polaris Industries Inc. at
It also provided good results for the fourth quarter of FY2012. The company was expected to report its quarterly revenue at $890.90 million. However, it surpassed the estimates by posting $900.6 million. It also beat EPS estimates of $1.23 per share by announcing its EPS at $1.24 per share. Its margins also improved from the previous year. However, it received a setback earlier this year as it had to recall 327 of its vehicles on account of a potential crash hazard.
Polaris Industries stock increased 24 percent in the past 52 weeks and the trend is likely to continue as it posted good results. The company also expects its first quarter revenue to be at $771.2 million, while its full year revenue is expected to be at $3.64 billion. For EPS, the company's estimate for the full year stands at $5.17 per share. The stock price is expected to retain its upward trance as the company is optimistic to keep up its performance continuing into the next quarter and year.
Harley-Davidson Cuts Costs
Harley-Davidson Inc. is one of the most iconic brands in this category. However, even the iconic companies need to change according to the times. Lately, Harley Davidson has been focusing on restructuring its business and its efforts are bearing its fruit as the stock reached a 5-year high. The company also benefits from the overall improvement in the economy. Download the free technical research on Harley-Davidson Inc. by signing up at
In order to bring down its costs, Harley-Davidson took a number of steps and now it expects its annual expenses to be down by $320 million for the next five years. The company recently announced higher revenues but lower profit. Curtailing its costs will certainly help Harley-Davidson in bringing its margins and profitability up. It is also looking to boost its retailing efforts in order to provide better customer satisfaction.
Harley-Davidson also brought more to investors' plates as it boosted its dividend by 35 percent. The company declared its dividend for the first quarter at 21 cents per share, up from 15 cents per share it had paid during the previous quarter. The stock itself grew 10 percent on a YTD basis. Its new initiative to cut costs and increase margins may lead the stock to scale new highs.
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