Southwest Airlines (LUV) Raises Quarterly Dividend 25% to $0.125; Sets New $2B Buyback

Southwest Airlines (NYSE: LUV) declared a quarterly dividend of $0.125 per share, or $0.5 annualized. This is a 25% increase from the prior dividend of $0.10. The dividend will be payable on June 28, 2017, to stockholders of record on June 7, 2017, with an ex-dividend date of June 5, 2017. The annual yield on the dividend is 0.9 percent.

The company authorized a new $2.0 billion share repurchase program.

Gary C. Kelly, Chairman of the Board and Chief Executive Officer, stated: "Based on our strong results, cash flow outlook, and investment grade balance sheet, I'm pleased to announce the Board's decision today to increase our quarterly dividend by 25 percent. Annualized, the increased dividend amounts to approximately $300 million1, and an approximate one percent dividend yield2, to our Shareholders. The Board also authorized a new $2.0 billion share repurchase program. Our May 2016 $2.0 billion share repurchase authorization was completed earlier this month.

"Since 2010, we have invested more than $10.0 billion to grow our net fleet by 179 aircraft and expand our network by 32 new destinations; rewarded our Employees with approximately $7.8 billion in profitsharing and benefits on top of base salaries; and returned approximately $6.4 billion to our Shareholders through a combination of dividends and share repurchases. Our strong financial position, performance, and outlook, along with the Board's actions today, fortify our ongoing commitment to return value to our Customers, Employees, and Shareholders."

For a dividend history and other dividend-related data on Southwest Airlines (LUV) click here.

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