I'm Taking A Flier On Boeing Shares

At times like these, I am grateful to be investing my own money. That’s because I decided to go all in on BOEING (SYMBOL BA, $339), and recent events make that look risky. I’m willing to accept the risk, but I’m not sure what I’d recommend to anyone else.

- Kathy Kristof

Boeing has been firing on all cylinders. In addition to announcing major new orders for aircraft on a nearly weekly basis, the company already has a $488 billion backlog—roughly five times this year’s expected revenue. Moreover, a “refresh” cycle for the wide-body jets that Boeing makes is expected to begin in 2020, which should keep the company’s manufacturing facilities humming for years.

Earnings per share were up a whopping 77% in 2017 and are expected to jump another 15% or 16% in 2018, and the company hiked its annual dividend by 20% in December. (For more on Boeing, see “Income Investing,” on page 56.)

I bought 35 shares at $334.44 each when the market dropped on February 6, bringing Boeing down to what I thought was a reasonable price. I bought another 10 shares at $323.16 per share three days later, when the market dropped a little more.

More bargain than I bargained for.