Need a reliable dividend stock? That's what employee-shareholders own at Peter Kiewit Sons' Inc. The contractor's stock has outperformed both the S&P 500 and the stocks of other heavy construction firms since 1999, growing in value at the same time Kiewit pays out significant dividends.
On May 2nd, Peter Kiewit Sons' CEO Bruce E. Grewcock informed the company's employee shareholders that Kiewit's directors had voted to pay a cash dividend of 50 cents per share. That's up from the 45 cents per share dividends paid in January and May, 2004. The company paid a 40 cents per share dividend in January, 2004.
The dividends are further evidence that Kiewit remains a standout wealth machine for employee shareholders, including top executives. Click here to view chart
The Omaha-based contracting giant bounced back in 2004 with $201 million, or $6.62 per share, in net income on $3.35 billion in revenue. In 2003 Kiewit reported only $157 million in net income, or $5.38 per share, on $3.37 million in revenue.
Strong earnings pumped up the value of Kiewit shares, which is reduced by the dividend payouts. The company valued its share after the most recent dividend at $37.55, up from $32 last year, according to filings with the Securities and Exchange Commission.
Kiewit's stock, owned by employee shareholders and retirees, has since 1999 far outperformed the S&P 500 Index and the Dow Jones Heavy Construction Index. A hundred dollars worth of Peter Kiewit Sons' stock has grown to $328 in that time. The same investment in the Dow Jones Heavy Construction Index would have only grown to $171. A similar investment in the S&P 500 Index would have lost $11.
Among the biggest beneficiaries of Kiewit's success have been the company's own top executives. According to the federal filings, 19 executives and directors own 32.3% of the company's stock.
Former CEO Kenneth E. Stinson is the biggest owner of Kiewit stock, with 7.6% of the shares. Grewcock, who succeeded Stinson as CEO in December, owns 5% of all Kiewit shares.
Stinson, who is chairman, will earn a salary for 2005 of $499,980 and a $3 million bonus for 2004 performance. Grewcock's annual salary for 2005 will be $700,024 with a bonus for 2004 performance of $2 million. "The Compensation Committee felt the approved compensation was well within a reasonable range," the company reported.
June 6 is the date set for Kiewit's shareholder meeting at Kiewit Plaza in Omaha.
Unlike other companies where whopping bonuses and executive pay have prompted shareholder revolts, there aren't likely to be many complaints.