Delta Air Lines, Inc. (DAL), Southwest Airlines Co. (LUV): Dividends From the Sky

SkyWest is one of those airlines that you have probably flown on and not even known it. It operates regional flights for major carriers, and uses those carriers’ names on the planes.

But SkyWest is able to use this position to generate a small dividend for shareholders, on par with those of the other dividend-paying airlines. While there has been some criticism of regional carriers branding themselves to appear like the major airlines themselves, SkyWest’s position is unlikely to go away, since the major airlines will still need it to feed passengers into their networks.

Show of financial strength

For many investors, dividends are a sign of stability and allow dividend-only funds to purchase the stock. Delta Air Lines, Inc. (NYSE:DAL), Southwest Airlines Co. (NYSE:LUV), WestJet, and SkyWest all want to show investors that they are more stable than their industry makes them appear.

Even though the dividends paid by these airlines are not enough to fulfill the role of an income stock, they still establish these airlines as more financially sound and shareholder-friendly. Those who are interested in airlines can now consider dividends as part of their airline selection criteria, something not normally connected with this industry.

Alexander MacLennan owns shares of Delta Air Lines and Air Canada. This article is not an endorsement to buy or sell any security and does not constitute professional investment advice. Always do your own due diligence before buying or selling any security. The Motley Fool recommends Southwest Airlines.

The article Dividends From the Sky originally appeared on Fool.com.

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