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How Delta Air Lines Has Maintained an Upward Dividend Yield Curve

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Nov. 8 2017, Updated 2:59 p.m. ET

Delta Air Lines’ dividend yield

Delta Air Lines’ (DAL) 51% dividend-per-share growth in 2016 has been followed by 50% growth in 2017, which explains the upward slope of its dividend yield curve. Its stock price has risen 2.5% in 2017, after falling 3% in 2016.

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Delta Air Lines versus broad indexes

Delta Air Lines has a PE (price-to-earnings) ratio of 8.7x and a dividend yield of 2.4%, whereas the sector’s average PE ratio is 8.7x and its dividend yield is 1.6%. The S&P 500 (SPX-INDEX) (SPY) offers a dividend yield of 2.3%, PE ratio of 22.6x, and YTD return of 15.6%. The Dow Jones Industrial Average (DJIA) (DIA) has a dividend yield of 2.3%, PE ratio of 21.1x, and YTD return of 19.1%. The NASDAQ (COMP-INDEX) (ONEQ) has a PE ratio of 25.3x and YTD return of 25.7%.

The PowerShares High Yield Equity Dividend Achievers ETF (PEY), a dividend fund, has 3% exposure to industrials, a 2.8% dividend yield, and a PE ratio of 18.7x. Meanwhile, the SPDR S&P International Dividend ETF (DWX) has 50% and 13% exposure to Europe and industrials, respectively. It has a 5% dividend yield and a PE ratio of 16x.

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