How Investors Should Approach Boeing's Dividend

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Boeing's CEO Dave Calhoun gave some insight to Boeing's dividend and the company's plan to stick with the 737 MAX Wednesday afternoon. 

Here's what happened. 

Calhoun said the company hopes to resume production of the 737 MAX months before the authorized date for the aircraft to go back in the air, CNBC reported.

Calhoun, when asked, said that he has no plans to scrap the 737 MAX. 

Calhoun also said the planemaker wouldn't cut its dividend despite the prolonged grounding of the 737 MAX jet.

This came after Boeing announced that it doesn't expect to get regulatory approval of the 737 MAX until mid-2020.

"We are informing our customers and suppliers that we are currently estimating that the ungrounding of the 737 MAX will begin during mid-2020," Boeing said in a statement. "This updated estimate is informed by our experience to date with the certification process. It is subject to our ongoing attempts to address known schedule risks and further developments that may arise in connection with the certification process."

So, let's take a step back and break down why Boeing keeping the dividend intact may be a short-term story. 

Real Money's Chris Versace joined TheStreet to break down when investors should start to get concerned about the dividend. 

Watch the full video above for more. 

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