After years of being Wall Street’s joke, Aaron Levitt of Dividend.com thinks airline names are “quickly becoming dividend royalty.” Airlines were facing a different environment a decade ago, with bankruptcies and high fuel costs putting pressure on the industry. Today, however, many names are experiencing profitability, allowing both dividend payments and stock buybacks. Although airlines aren’t the “highest yielders,” as Levitt points out, he believes they “could be some of the fastest as sector trends continue.”
Article summary written by U.S. Global Investors.
Past performance does not guarantee future results.