Topic: How To Invest

Dividend Advisor Hotline – Friday, April 28, 2017

Article Excerpt

WESTJET AIRLINES LTD., $22.58, Toronto symbol WJA, last raised its dividend by 16.7% with the March 2015 payment, to $0.14 a share from $0.12. The annual rate of $0.56 yields 2.5%. Subject to agreement with its pilots and any required regulatory approvals, the company will launch a new, ultra-low-cost carrier (ULCC) in Canada. It will start up the service in late 2017, using an initial fleet of 10 Boeing 737-800s. WestJet was founded in 1996 as a no-frills carrier. It has lately moved away from that model by adding premium economy seats, launching a regional air carrier, WestJet Encore, and starting overseas flights to European destinations such as London. The company now aims to reintroduce a no-frills, lower-cost travel option. It can keep costs down by using its existing aircraft and flying on routes it already serves. WestJet may also beat other ultra-low-cost carriers that are likely to start up in Canada in the coming years. In 2016, the federal government said it would…