How to Buy Boeing Stock – Will it Help Your Portfolio Soar?
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It's impossible not to know about Boeing Co. The company manufactures any commercial airplane and Dreamliners you have flown. It involves defense, space & security manufacturing with the U.S. government and global services. But before March 2020, Boeing had serious trouble grounding certain aircraft due to safety issues.
Yet despite the losses — caused by costly repairs, canceled orders, and the coronavirus pandemic — the Boeing Company (NYSE: BA) is beginning to pique the interest of investors on Wall Street.
The aviation industry has now recovered, and more people are traveling again. If you want to diversify your portfolio to include a share (or a fraction of a share) of Boeing, here’s a quick how-to guide to get you started.
In this article
Step 1: Finding a broker that offers Boeing stock
If you’re a first-time investor looking to buy into industrial stocks like Boeing on the stock market, you’ll need to find a broker. Instead of using a traditional broker, who will most likely come with hefty fees, I recommend using an online brokerage. An online broker (sometimes called a discount broker) will give you the power to invest your way — online trading allows hungry investors to buy, sell, and trade in real-time.
Unsure of how to find the best online brokerage for you and your financial goals? Here are three online platforms to consider.
Stash
For those who are low on cash or interested in purchasing fractional shares instead of full shares, Stash is a great option. Stash is a mobile-friendly investing platform that allows users to invest in various stocks for as little as $3 per month. In addition to a personal investment account, the beginner account includes a bank account with a Stock-Back Card, $1,000 in life insurance from Avibra, and tons of educational resources to help users make sound financial decisions.
For $9 per month, members can upgrade to Stash+, which includes all of the features listed above, an investment account for two children, an additional $9,000 in life insurance, and monthly market insights.
There’s no minimum required to open an account, but you'll need a $5 account minimum if you're investing with Stash. Similar to Robinhood and other investment apps, users can purchase a slice of the Boeing Company, in addition to several other companies, via fractional shares. To do this, Stash pools users’ funds to make high-cost stocks more affordable by receiving a fraction of a stock and a fractional percentage on the returns.
Pros and cons
Pros
- Stash is user-friendly and affordable. New users can open a beginner account starting at $3.
- There’s no minimum deposit required to open an account.
- Stash is great for users who want to buy fractional shares.
Cons
- The ETFs available through Stash have a high expense ratio.
Robinhood
Robinhood, a free-trading mobile app, became popular when the whole GameStop debacle was going on (thanks to chatty Reddit users). Now, hundreds of aspiring investors use Robinhood to invest on the go. In addition to allowing users to trade stocks, options, and exchange-traded funds (ETFs), Robinhood offers cash management accounts and free cryptocurrency trading. The best part? There’s no account minimum.
Although mutual funds and bonds aren’t offered, Robinhood does give users the option to upgrade to a Gold account for $5 per month or $60 per year. This paid monthly subscription provides users with research from Morningstar, NASDAQ, and Nasdaq TotalView level II Market Data.
While Robinhood is known for its commission-free trading, other fees may apply:
- Robinhood charges a Trading Activity Fee (TAF) of $0.000166 per share (equity sells) and $0.00279 per contract (options sells). This fee is rounded to the nearest penny and maxes out at $8.30.
- A regulatory transaction fee of $8 per $1,000,000 of principal (sells only). This fee is paid to the Securities and Exchange Commission (SEC) and only applies to sales valued at more than $500.
- Robinhood also charges American Depositary Receipt (ADR) Fees from $0.01 to $0.03 per share when buying foreign stocks traded on American exchanges.
Robinhood is available for iOS and Android users, and it’s free to open an account. Users must enter their social security number, date of birth, citizenship status, mailing address, and bank account information to get started. There’s also a web-based version of the app for those who prefer to work on a desktop.
Bonus: Robinhood sells fractional shares. This way, users who cannot pay for a full share of companies like Apple and Tesla (or feasibly diversify their portfolio without going broke) can do so by buying a fraction of a stock. Robinhood offers fractional shares as small as 1/1,000,000 of a share. Within minutes, you could own a fraction of the Boeing Company for as little as $1!
Pros and cons
Pros
- Robinhood is easy to use, and sign-up only takes a few minutes.
- There are no monthly fees or minimum account balances unless you upgrade to a Gold account.
- With Robinhood, everyone can invest, including industry newbies, via fractional shares.
Cons
- Robinhood offers one type of account: a taxable brokerage account.
- The platform does not support mutual funds, preferred stocks, or offer retirement accounts.
- Robinhood doesn’t provide many educational tools/data to free users.
Step 2: Research Boeing shares
The Boeing Company was founded as the Aero Products Company by William E. Boeing in 1916 and was initially located in Seattle. (Boeing changed the name in 1917 to the Boeing Airplane Company.) The Boeing Airplane Company relocated to Chicago in 2001.
Before Boeing became its current aerospace giant, it generated income through the U.S. military. Boeing built several military aircraft and other defense products in the 1920s and ‘30s. William E. Boeing envisioned his company as the future of aviation.
“We are embarked as pioneers upon a new science and industry in which our problems are so new and unusual that it behooves no one to dismiss any novel idea with the statement that ‘it can’t be done!'” Boeing said in a statement in 1928.
With the future in mind, Boeing began selling aircraft to deliver mail. Then, in 1931, the company transformed again, creating one large airline: United Airlines. Boeing also launched several aircraft manufacturing companies, including Avion and Pratt & Whitney. In 1958, Boeing released the 707. When word got out that travelers could fly from New York to Los Angeles within a few hours, Boeing reached a new level in the industry.
Boeing also had a hand in creating air- and land-craft for NASA, starting with the Lunar Roving Vehicle, which was used on the Apollo space flights in the 1960s and ‘70s. The company began trading on the New York Stock Exchange (NYSE) as ticker BA on January 2, 1962, at $0.8230 per share.
Boeing’s price history
Despite its two-year hardship, Boeing is a top-performing stock and celebrated a strong first quarter. The latest stock price for Boeing as of May 13, 2024, is $178.51.
Investing $1,000 in BA stock in 1962 would have bought you about 1,215 shares. Boeing had eight stock splits between 1966 and 1997.
Boeing’s dividend information
The company paid dividends at the end of every quarter since going public in 1962 until 2020, when Boeing ceased paying dividends. Boeing’s last dividend yield was $2.055 per share, payable on March 6, 2020.
According to Reuters, Boeing decided to cancel CEO pay, suspend its dividend payments (March 20, 2020), and extend a pause on share buybacks in hopes of overcoming the financial destruction caused by the coronavirus pandemic and two recent Boeing 737 MAX crashes that killed 346 people. Four years later, the company hasn't announced a buyback plan yet.
Best features of Boeing stock
The last few years may have put us through the wringer, but 2024 is the year for travel. This bodes well for Boeing.
Multiple airlines are placing orders for the new jets. Southwest agreed to add 100 planes to its fleet of 250, while Boeing has closed a 21-order deal with Japan Airlines. TAAG Angola Airlines has ordered four 787 Dreamliner jets, and United Airlines has ordered 110 aircraft to be delivered by 2028. Boeing is pushing production to meet the rising demand and is expected to ramp up production. It aims to produce 51 737s a month in June 2025 and is aiming for production of 50 jets a month in 2025-26.
Boeing’s defense line is also beginning to take a turn for the better. According to Zacks Equity Research, Boeing closed on a $1.62 billion modification contract for manufacturing and delivering 11 P-8A Poseidon aircraft. The U.S. Navy awarded the deal. The contract is projected to be completed in September 2024. The company was also awarded a $460 million contract from the U.S. Missile Defence Agency.
In addition to new orders, Boeing has “revenge travel” on its side. Wall Street is feeling optimistic about the future of travel. Boeing and other travel and leisure companies are experiencing an uptick in stock prices.
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Step 3: Open an account & buy Boeing shares
You can open an online brokerage account if you want to buy Boeing shares. Here’s a quick how-to guide on buying Boeing stock with Robinhood to get you started. The platform is known for its commission-free investing and user-friendly app.
Once you’ve figured out how much you’d like to invest, visit Robinhood.com. You should see a black button on the homepage that reads “Sign Up.” Click on it. You’ll then be greeted with a screen that reads: “Your free stock referral from Robinhood is waiting for you.” To proceed, click “Claim your free stock now.”
After you click that bright green button, you’ll be taken to a page that asks you to provide some personal information, including your legal name, email, and password, to secure your account. Fill this in and click “Continue.” You’ll then be asked to add your date of birth, citizenship status, and social security number.
Next, you’ll be asked to answer a few questions about your experience as an investor. You’ll also need to provide your employment information and confirm whether or not you or a family member are a 10% shareholder of a publicly traded company.
Once you’ve answered all the questions, you’ll be asked to set up and fund your account. To do this, you can link your bank account and fund your Robinhood account immediately or choose to wait and fund it later. Note: you won’t be able to invest until your account is funded.
After you’ve set up and funded your account, you’ll be able to purchase shares of the Boeing Company.
FAQs
How much were Boeing shares when the company first went public?
In 1962, Boeing shares traded for $0.8230 per share.
How much does it cost to buy Boeing shares today?
The latest closing stock price for Boeing as of May 13, 2024, is $178.51
Does Boeing pay dividends?
The Boeing Company does not currently pay a dividend.
What is the minimum number of Boeing shares that I can buy?
You can buy one share or you can purchase a fractional share. Robinhood, for example, sells fractional shares as small as 1/1,000,000 of a share.
The bottom line
When considering an investment in the stock market, whether in some of the best stocks listed on the Dow Jones or elsewhere, it’s crucial to evaluate your financial situation thoroughly. The goal is to determine a safe investment amount that doesn't compromise your financial stability or comfort. The stock market is known for its high volatility; even the most profitable stocks can experience significant fluctuations. This level of unpredictability underscores the importance of making a well-informed decision.
Before committing to either a full or fractional share of stock, assess how much you can comfortably invest without risking your financial well-being. This careful consideration is especially vital when dealing with the high-stakes environment of the Dow Jones, where stock movements can be unpredictable. After establishing a budget that aligns with your financial capacity and investment goals, you can proceed with your investment. Whether you're targeting the best stocks for profitability or diversifying your portfolio, this approach ensures you are investing within your means, considering the stock market's inherent risks and opportunities.
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Writer
Tabitha Britt is a New York-based freelance writer and editor whose work has appeared on INSIDER, the Huffington Post, and Taste of Home. When she's not glued to her computer screen, she can be found walking her beloved pooch, Biscuit.
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