Southwest Is Bringing Its Dividend Back: What Investors Should Know
Just as Southwest Airlines (NYSE: LUV) kicks off its 2022 Investor Day on Wednesday, the company released some good news for shareholders: It is reinstating its dividend after suspending it in early 2020, when COVID-19 related lockdowns slammed the travel industry.
The return of Southwest's dividend signals strength in the travel industry and in the company's underlying business. The company expects fourth-quarter operating revenue to surge 13% to 17% year over year. "Strong leisure and business revenue trends continue in fourth quarter 2022, and we continue to expect strong profits and margins," said Southwest management in the company's investor presentation on Wednesday as it reaffirmed its fourth-quarter revenue guidance.
As Southwest readies its first dividend since 2020, here's a closer look at the company and its payout.
Source Fool.com
