Southwest Airlines Co. (NYSE:LUV) Announces $0.18 Quarterly Dividend

Key Points

• Southwest Airlines declared a quarterly dividend of $0.18 per share, payable September 24 to shareholders of record on September 3. The dividend is equivalent to $0.72 annually and a 1.6% yield.
• The dividend appears well covered, with a current payout ratio of 28.8% and an expected future payout ratio of 13.4% based on projected earnings.
• Southwest reported quarterly EPS of $0.94, beating the $0.52 analyst consensus, while revenue reached $8.72 billion versus estimates of $8.58 billion.

Southwest Airlines Co. (NYSE:LUV - Get Free Report) announced a quarterly dividend on Thursday, July 30th. Shareholders of record on Thursday, September 3rd will be given a dividend of 0.18 per share by the airline on Thursday, September 24th. This represents a c) annualized dividend and a yield of 1.6%. The ex-dividend date of this dividend is Thursday, September 3rd.

Southwest Airlines has increased its dividend payment by an average of 0.3%annually over the last three years. Southwest Airlines has a dividend payout ratio of 28.8% indicating that its dividend is sufficiently covered by earnings. Equities research analysts expect Southwest Airlines to earn $5.37 per share next year, which means the company should continue to be able to cover its $0.72 annual dividend with an expected future payout ratio of 13.4%.

Southwest Airlines Stock Performance

NYSE LUV opened at $45.59 on Friday. The stock has a fifty day simple moving average of $46.53 and a 200-day simple moving average of $44.37. The company has a current ratio of 0.49, a quick ratio of 0.42 and a debt-to-equity ratio of 0.54. The stock has a market cap of $22.30 billion, a PE ratio of 27.97, a P/E/G ratio of 0.38 and a beta of 1.12. Southwest Airlines has a twelve month low of $28.98 and a twelve month high of $55.11.

Southwest Airlines (NYSE:LUV - Get Free Report) last issued its quarterly earnings data on Wednesday, July 22nd. The airline reported $0.94 EPS for the quarter, topping the consensus estimate of $0.52 by $0.42. The firm had revenue of $8.72 billion for the quarter, compared to analyst estimates of $8.58 billion. Southwest Airlines had a net margin of 2.78% and a return on equity of 14.15%. The business's revenue for the quarter was up 16.4% compared to the same quarter last year. During the same period in the prior year, the business posted $0.43 EPS. Southwest Airlines has set its FY 2026 guidance at 3.250-4.250 EPS and its Q3 2026 guidance at 0.500-0.750 EPS. Equities analysts anticipate that Southwest Airlines will post 3.52 earnings per share for the current year.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in LUV. Franklin Resources Inc. grew its stake in shares of Southwest Airlines by 7.0% during the 4th quarter. Franklin Resources Inc. now owns 40,200,530 shares of the airline's stock worth $1,661,488,000 after purchasing an additional 2,626,853 shares during the period. Invesco Ltd. lifted its stake in Southwest Airlines by 9.2% in the 3rd quarter. Invesco Ltd. now owns 6,837,197 shares of the airline's stock valued at $218,175,000 after buying an additional 577,326 shares in the last quarter. Morgan Stanley raised its holdings in shares of Southwest Airlines by 4.1% in the fourth quarter. Morgan Stanley now owns 6,228,475 shares of the airline's stock worth $257,423,000 after acquiring an additional 244,891 shares during the last quarter. Dimensional Fund Advisors LP raised its stake in Southwest Airlines by 2.1% in the 1st quarter. Dimensional Fund Advisors LP now owns 5,763,154 shares of the airline's stock valued at $216,472,000 after purchasing an additional 117,833 shares during the last quarter. Finally, Norges Bank acquired a new position in shares of Southwest Airlines in the fourth quarter valued at approximately $172,038,000. 80.82% of the stock is owned by hedge funds and other institutional investors.

Southwest Airlines Company Profile

Southwest Airlines Co is a U.S.-based low-cost carrier that operates a point-to-point domestic and near-international airline network. Headquartered in Dallas, Texas, the company primarily flies Boeing 737 aircraft and offers no-frills, single-class service designed to keep fares competitive. Southwest's operating model emphasizes high aircraft utilization, quick turnaround times and an open seating policy, allowing customers to board and select seats on a first-come, first-served basis.

Founded in 1967 by Herb Kelleher and Rollin King as Air Southwest Company, Southwest began commercial service in 1971, initially connecting Dallas, Houston and San Antonio.

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