I’ll be the first to admit that investing in airline stocks is tricky at the moment. If nothing else, the selloff that airline stocks faced in late May due to pricing concerns is a pointer. But I want to make a bold call here: It’s time for investors to not just consider airline stocks — but to consider them as income plays. Yes, Southwest Airlines (LUV) and Delta Air Lines (DAL) both yield south of 1% right now. But I think we’re starting to see a trend that should soon change that.
In fact, just recently, both companies put a significant jolt into their quarterly payouts — something that should become a more common occurrence. The airline industry traditionally hasn’t been too generous about returning value to shareholders in form of a dividend. In fact, as of the beginning of 2013, LUV was the only major U.S. airline paying dividend; DAL and Alaska Air Group (ALK) only joined later that year. As you might have guessed, a large part of why airlines have been so skimpy on the dividend front has been past profitability struggles. But we might be in the midst of a new dawn for airline stocks.
Source: InvestorPlace
Related Articles:
- Are Storm Clouds Gathering For These 5 High-Yielding Securities?
- Why Dividends Matter
- 26 Income Securities For A Well-Rounded Asset Allocation
- International Diversification May Be Closer than You Think
- 10 Small/Mid-Cap Dividend Growth Stocks Answering The Call
Why Airline Stocks Should Be on Your Income Radar
Posted by D4L | Friday, July 10, 2015 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
~
Popular Posts Last 30 Days
-
As a relatively new blogger, the one thing that has stood out in my mind is the number of Canadian bloggers in the areas that I am most inte...
-
Dividends and diversification -- those two things can help you achieve a comfortable retirement when combined with the income you will recei...
-
The best dividend stocks have one thing in common: resiliency. They can continue increasing their dividends even in the harshest economic en...
-
Investors wanting to enjoy steady and consistent income should consider dividend aristocrats. In fact, even in these chaotic times, dividend...
-
When looking for dividend stocks to invest in, it is advisable to choose companies that have strong dividend histories and stable balance sh...
-
A good dividend stock has more than a high yield. Dividends need to be supported by cash flow, and cash flow depends on the long-term streng...
-
When hunting for discounted investments, one excellent starting point is to look for businesses with dividend yields trading above their fiv...
-
Higher dividend yields often imply that the underlying company paying the dividend has a higher risk profile. However, that's not always...
-
It's hard to beat a sustainable, high-yield dividend paired with a beaten-down valuation. The best dividend stocks offer high yields and...
-
Strange but true: seniors fear death less than running out of money in retirement. And unfortunately, even retirees who have built a nest eg...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.