Southwest Airlines reinstates quarterly dividends
Southwest Airlines will resume quarterly dividends in 2020 after suspending cash disbursements to deal with the epidemic and meet government aid requirements.
Southwest said on Dec. 7 that its board of directors resumed a quarterly cash dividend of $.18 per share to stockholders of record on Jan. 10, 2023.
TradeStation VP of market intelligence David Russell told FOX Business, "Dividends are a hallmark of stability and confidence, while cutting
"Southwest's move is a sign that management sees business coming back in 2023," he said. "It's another sign of life returning to normal after nearly three years of disruption."
"Airlines are also seeing a return to profitability as demand rebounds, but a lot of investors remain skeptical because they're worried about a recession," he said.
The coronavirus pandemic did not affect the company's quarterly dividend of $.18 per share, or $.72 per share yearly, which amounts to almost $428 million and a 1.8% dividend yield.
"Today's announcement reflects the strong return in demand for air travel and the company's solid operating and financial results since March 2022," Southwest CEO Bob Jordan stated.
"The reinstatement of our quarterly dividend also reflects our balance sheet strength and continued focus on generating consistently healthy earnings
Southwest Airlines shares were down 5.46% at 11:30 a.m. but had gained 0.83% in the past month.
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