Delta to start dividend and share buyback
Delta Air Lines announced Wednesday, May 8, 2013, that it will start paying a quarterly dividend and buy back some of its shares. This Delta jet is flying over the company's billboard at Citi Field. (April 6, 2013) Credit: AP
Delta Air Lines Inc. says it will start paying a quarterly dividend and buy back some of its shares -- investor-friendly moves that are common in other industries but rare for airlines.
Delta said on Wednesday that it will pay a quarterly dividend of 6 cents per share starting Sept. 10. If it keeps paying a dividend of that size, the yield would be 1.3 percent per year.
The airline also plans to buy back $500 million of its stock by June 30, 2016. That returns cash to shareholders, while also boosting the company's per-share earnings by reducing the outstanding shares.
Of the large U.S. airlines, only Southwest Airlines Co. pays a dividend, of one penny per quarter.
Sarra Sounds Off Ep. 35: EI baseball, girls lacrosse and plays of the week On the latest episode of "Sarra Sounds Off," we look at East Islip baseball's inspirational comeback story, Jared Valluzzi has the plays of the week and Tess Ferguson breaks down the top defensive players in girls lacrosse.
Sarra Sounds Off Ep. 35: EI baseball, girls lacrosse and plays of the week On the latest episode of "Sarra Sounds Off," we look at East Islip baseball's inspirational comeback story, Jared Valluzzi has the plays of the week and Tess Ferguson breaks down the top defensive players in girls lacrosse.
