Southwest Raises Dividend, Approves Stock Repurchase
19 May 2016 - 3:00AM
Dow Jones News
Southwest Airlines Co. said Wednesday it boosted its quarterly
dividend 33% and rolled out a new $2 billion share-buyback plan,
joining other carriers in sweeping cash returns to
shareholders.
Chief Executive Gary Kelly said the authorization was the
largest for the company in its "decades-long history of returning
value back to our shareholders." Southwest recently completed its
previous buyback, totaling 37.3 million shares, for $1.5
billion.
The quarterly dividend will increase to 10 cents a share from
7.5 cents, beginning Wednesday. That pushes the annual dividend
yield to about 1% based on Tuesday's closing stock price. Southwest
said the increase amounts to $255 million annually.
Earlier this year, United Continental Holdings Inc., the
third-largest U.S. airline by traffic, said it plans to repurchase
$750 million in shares during the first quarter, having bought back
$1.2 billion during 2015.
Last month, American Airlines Group Inc., confident of its
long-term success, announced another $2 billion share-buyback
program to run through 2017. This came after the company, the
nation's largest airline, has returned $6.6 billion to investors
through dividends and share repurchases since mid-2014.
On Monday, Delta Air Lines Inc., the nation's No. 2 airline by
traffic, said it would boost its annual dividend and finish off a
$5 billion stock-buyback program in May of next year.
Southwest shares were recently up 2.2% at $43.14.
Write to Anne Steele at Anne.Steele@wsj.com
(END) Dow Jones Newswires
May 18, 2016 12:45 ET (16:45 GMT)
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