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Delta Air Lines (DAL) Cheers Investors With Dividend Renewal
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In a shareholder-friendly move, Delta Air Lines (DAL - Free Report) announced the resumption of its dividend payout. DAL’s board of directors has approved a dividend payment of 10 cents per share. The renewed dividend will be paid on Aug 7, 2023, to all its shareholders of record as of Jul 17, 2023. The move reflects DAL’s intention to utilize free cash to enhance its shareholders’ returns.
DAL had to suspend its dividend payout during the COVID-19 pandemic. The restrictions, under the CARES Act, prohibited airline companies from paying dividends or buying back shares till Sep 30, 2022.
This resumption reflects Delta's progress on its three-year financial plan (which includes debt repayment of more than $10 billion in the last two years).
Management’s decision to resume dividend payments reflects DAL’s financial strength. People are again booking flights, leading to higher passenger revenues and contributing to most airlines’ top lines.
DAL management’s decision to restart its quarterly dividend payout also reflects the company’s commitment toward boosting shareholder value apart from its strong free cash flow-generating ability. The current uncertain scenario also makes dividend-paying stocks much sought after as they provide a solid income stream and have fewer chances of experiencing wild price swings.
Copa Holdings has an expected earnings growth rate of 75.42% for the current year. CPA delivered a trailing four-quarter earnings surprise of 14.60%, on average.
The Zacks Consensus Estimate for CPA’s current-year earnings has improved 25.5% over the past 90 days. Shares of CPA have soared 38.7% over the past six months.
Allegiant has an expected earnings growth rate of more than 100% for the current year. ALGT delivered a trailing four-quarter earnings surprise of 79.78%, on average.
The Zacks Consensus Estimate for ALGT’s current-year earnings has improved 46.5% over the past 90 days. Shares of ALGT have soared 67.4% over the past six months.
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Delta Air Lines (DAL) Cheers Investors With Dividend Renewal
In a shareholder-friendly move, Delta Air Lines (DAL - Free Report) announced the resumption of its dividend payout. DAL’s board of directors has approved a dividend payment of 10 cents per share. The renewed dividend will be paid on Aug 7, 2023, to all its shareholders of record as of Jul 17, 2023. The move reflects DAL’s intention to utilize free cash to enhance its shareholders’ returns.
DAL had to suspend its dividend payout during the COVID-19 pandemic. The restrictions, under the CARES Act, prohibited airline companies from paying dividends or buying back shares till Sep 30, 2022.
This resumption reflects Delta's progress on its three-year financial plan (which includes debt repayment of more than $10 billion in the last two years).
Management’s decision to resume dividend payments reflects DAL’s financial strength. People are again booking flights, leading to higher passenger revenues and contributing to most airlines’ top lines.
DAL management’s decision to restart its quarterly dividend payout also reflects the company’s commitment toward boosting shareholder value apart from its strong free cash flow-generating ability. The current uncertain scenario also makes dividend-paying stocks much sought after as they provide a solid income stream and have fewer chances of experiencing wild price swings.
Zacks Rank & Stocks to Consider
Delta currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks for investors interested in the Zacks Transportation sector are Copa Holdings (CPA - Free Report) and Allegiant Travel Company (ALGT - Free Report) . Each of these companies presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Copa Holdings has an expected earnings growth rate of 75.42% for the current year. CPA delivered a trailing four-quarter earnings surprise of 14.60%, on average.
The Zacks Consensus Estimate for CPA’s current-year earnings has improved 25.5% over the past 90 days. Shares of CPA have soared 38.7% over the past six months.
Allegiant has an expected earnings growth rate of more than 100% for the current year. ALGT delivered a trailing four-quarter earnings surprise of 79.78%, on average.
The Zacks Consensus Estimate for ALGT’s current-year earnings has improved 46.5% over the past 90 days. Shares of ALGT have soared 67.4% over the past six months.