Alaska Air Group, Inc. (ALK) Hops on Board the Dividend Train

Based on Alaska’s recent trading price, its dividend yield is approximately 1.4%, similar to the Delta and Southwest dividend yields. At this level, the dividend is symbolic more than anything else; Alaska Air Group, Inc. (NYSE:ALK)’s share repurchase program is returning significantly more value to shareholders. However, the symbolism is still important. Many savvy investors focus on investing in companies that pay a regular dividend, because regular dividends are the surest sign of a shareholder-oriented management team.

Foolish bottom line
So far, 2013 seems to be the year when the highest-quality major airlines are separating themselves from the pretenders. Delta, Southwest, and Alaska Air Group, Inc. (NYSE:ALK) are among the most consistently profitable airlines in the industry. This has given all three the flexibility to pay regular dividends that are modest, but not insignificant. By contrast, most of their competitors have a lot of work to do to gain the financial strength and predictability of earnings necessary to commit to a long-term quarterly dividend program.

The article Alaska Air Hops on Board the Dividend Train originally appeared on Fool.com and is written by Adam Levine-Weinberg.

Fool contributor Adam Levine-Weinberg has no position in any stocks mentioned. The Motley Fool recommends Southwest Airlines.

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