Even as the stock market took a 500-point dive Wednesday, Goodrich (GR) brightened investors' dreary day a bit with an 11% dividend enrichment. Under its former moniker B.F. Goodrich, the company was one of the world's largest tire and rubber manufacturers, but it sold that business to Michelin in 1988. Now a $7 billion global supplier of aerospace, defense and homeland-security products, Charlotte, N.C.-based Goodrich voted a new quarterly on its common of 25 cents a share, versus 22.5 cents.
This is Goodrich's second consecutive annual boost. Uninterrupted dividends date back to 1939. Disbursement will take place Jan. 2 to stockholders of record Dec. 1. The ex-dividend date is Nov. 26. Yield: 3.12%.

11%

Finally, Cramer said both Goodrich (GR), maker of aircraft wheels and brakes, and composite maker Hexcel (HXL), are at risk of big losses from a lengthy strike.

PE of 10, a PEG of 0.62, and pays a yield of 2%.

Atlantic Investment Management will continue its "active discussions" with Goodrich's management, aimed at maximizing shareholder value. It also may hold discussions with other parties about value-enhancing activities. Atlantic Investment boosted its holdings to 6,500,000 shares (5.2%) by buying 2,630,000 from May 29 to July 11 at prices ranging from $43.41 to $64.69.

From a recent Mad Money show:

"Goodrich I don't trust yet, even at a 52-week low. Everyone's announcing that they're not buying planes and that's just bad news for all of the suppliers."

The company's board has approved the repurchase of shares worth $300 million. The latest authorization takes the total buyback plan, which was initiated in October 2006, to $600 million. Since the program began, Goodrich has bought back 3.9 million shares for $227 million. The Charlotte-based company has about 125 million shares outstanding. The buyback would offset the dilution of shareholder stakes resulting from stock-option grants.

Goodrich has announced a quarterly dividend of 22.5 cents a share payable on April 1 to shareholders of record on March 3. The company's performance was robust last year, with strong sales in regional- and general-aircraft equipment and replacement parts.

With sales of the Embraer 190 100-seat jet doubling in 2007, the aerospace supplier faced high demand. Net profit jumped 34% to $132.3 million, or $1.04 per diluted share, in the fourth quarter, while revenue grew to $1.67 billion, from $1.5 billion in the fourth quarter of 2006. Even without considering one-time gains, Goodrich beat Wall Street expectations with earnings of 95 cents per diluted share.

I expect the company to thrive, even as the U.S. economy recedes. Goodrich has a diversified product and platform portfolio and a strong global presence, both of which are significant positives against the economic slowdown. It operates in a space that is booming across the globe, namely aerospace and aviation. Sales to Airbus and Boeing will continue to be strong. For example, last week, Goodrich landed a $100 million contract to provide cabin-attendant seats for the Airbus A320.

The company has also opened an expanded maintenance and repair campus in Singapore for serving commercial and military aerospace customers in Asia, Australia and the Pacific Rim. Moreover, President Bush's $515.4 billion defense budget, which marks a 7.5% jump over fiscal 2008 and would be used toward continuing the struggles in Iraq and Afghanistan, bodes well for companies like Goodrich. In addition, the company has proved that it can cater to high demand and improve its margins simultaneously.

On Jan. 31, Jim Cramer said "I like Goodrich, and the umbrella of Boeing will help." Also, there are several investment funds that own the company, which you can see a list of on Stockpickr.com.

The company has generated a return on equity of a healthy 21.82% and its P/E/G ratio is 0.91. Shares have been on a downswing since the beginning of this year. With a broad portfolio and a global customer base, it is fairly insulated against the U.S. downturn. I believe the stock will generate positive returns over the next 12 to 18 months. I think Goodrich is a good way to get rich.

Aerospace supplier Goodrich Corp. said Tuesday its board approved the repurchase of $300 million in shares, doubling the funding available starting in October 2006 for share buybacks.

The company said it has already repurchased 3.9 million shares for $227 million since October of 2006. The buybacks are intended to mitigate dilution of shareholder stakes caused by stock option grants.

The aerospace and defense parts and services supplier also recently reaffirmed its 2008 outlook Thursday, fueled by "double-digit growth" in sales to large commercial airplane manufacturers.

The stock trades for 8x cash flow.

Deutsche Bank said it is downgrading Goodrich (GR) to a Hold rating due to growing caution on commercial auto. Target price cut to $73.

the war

5 tires per new truck/suv and sales are falling. China and India probably will not use US made tires.

stockoptions far to many-mangement istoo greedy