Hog Dividend Valuation Model

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9) Harley-Davidson Inc. was founded in 1903 in Milwaukee, Wisconsin and incorporated in 1981. It is a parent company with Harley-Davidson Motor Company and Harley-Davidson Financial Services. Harley-Davidson is the only major motorcycle manufacturer based out of the United States and one of the leading manufacturers of heavyweight motorcycles in the world. Harley-Davidson conducts business in North America, the Middle East, Europe, the Asia-Pacific, Latin America, and Africa with more than 1,600 dealers. Harley-Davidson produces heavy weight motorcycles and a complete line of motorcycle parts, general merchandise, motorcycle gear, and accessories. The company offers five families of motorcycles: Touring, Dyna, Sportster, Softail, and V-Rod and also gives the option to customer your own Harley. Harley-Davidson Financial services provides retail financing, servicing wholesale, consumer retail loans and motorcycle insurance to Harley-Davidson Dealers and retail customers in the United States, Canada, and Europe. 10) Harley-Davidson Inc. (HOG) beta is currently at 1.50 (Value Line) meaning that it will be 50% more volatile in the market. The company paid out their dividends in 2009 because the payout ratio was extremely high at 6.67 while the other years ranged from .21-.46. The sales, earnings, and dividends are expected to increase in the next 5-6 years especially sales with a high of 10%. The current stock price continues to increase every day, starting at $49.95 on April 15, 2013 and currently at $51.83 (April 21).

Kiana Cheng
FIN 400
Dividend Valuation Model
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