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

Key Points

• Southwest Airlines declared a $0.18 quarterly dividend (annualized $0.72) payable July 2 to shareholders of record on June 11, implying a yield of about 1.7%.
• The dividend appears sustainable: Southwest has a payout ratio of 28.8% and analysts project $5.04 EPS next year, which would lower the implied payout ratio to roughly 14.3%.
• In the most recent quarter Southwest reported $0.45 EPS (matching estimates) on $7.25B revenue, set Q2 2026 guidance of $0.35–$0.65 EPS, and its stock trades around $42 with a P/E near 27 and a market cap of about $20.6B.

Southwest Airlines Co. (NYSE:LUV - Get Free Report) declared a quarterly dividend on Thursday, May 7th. Shareholders of record on Thursday, June 11th will be given a dividend of 0.18 per share by the airline on Thursday, July 2nd. This represents a c) annualized dividend and a yield of 1.7%. The ex-dividend date is Thursday, June 11th.

Southwest Airlines has raised its dividend by an average of 0.3%annually over the last three years. Southwest Airlines has a payout ratio of 28.8% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect Southwest Airlines to earn $5.04 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 14.3%.

Southwest Airlines Stock Up 1.7%

LUV stock opened at $42.11 on Friday. The stock's fifty day simple moving average is $40.90 and its two-hundred day simple moving average is $40.61. The company has a current ratio of 0.48, a quick ratio of 0.41 and a debt-to-equity ratio of 0.66. Southwest Airlines has a 1-year low of $28.98 and a 1-year high of $55.11. The stock has a market cap of $20.58 billion, a P/E ratio of 27.18, a P/E/G ratio of 0.44 and a beta of 1.12.

Southwest Airlines (NYSE:LUV - Get Free Report) last announced its quarterly earnings data on Wednesday, April 22nd. The airline reported $0.45 EPS for the quarter, hitting the consensus estimate of $0.45. The business had revenue of $7.25 billion for the quarter, compared to analyst estimates of $8.46 billion. Southwest Airlines had a net margin of 2.83% and a return on equity of 10.66%. The company's revenue for the quarter was up 12.8% on a year-over-year basis. During the same quarter in the previous year, the firm posted ($0.13) earnings per share. Southwest Airlines has set its Q2 2026 guidance at 0.350-0.650 EPS. Analysts expect that Southwest Airlines will post 2.9 EPS for the current year.

About Southwest Airlines

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.