Updating WestJet Airlines Ltd.

Article Excerpt

WESTJET AIRLINES LTD. $25 (Toronto symbol WJA, Cyclical- Growth Dividend Payer Portfolio, Manufacturing & Industry sector; Shares outstanding: 117.2 million; Market cap: $2.9 billion; Dividend yield: 2.2%; Dividend Sustainability Rating: Above Average; www.westjet.com) serves 104 destinations in North America, Central America, the Caribbean and Europe. Its fleet of 121 modern Boeing 737s and 767s are much more fuel-efficient than older jets. WestJet 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 2.2%. The company plans to launch its no-frills, low-cost airline in mid-2018. Called “Swoop,” the discount carrier will feature a fluorescent pink logo on its planes. WestJet expects its fares to be roughly 40% lower than those for its regular flights. Customers for Swoop should include budget-conscious Canadians who currently fly out of Buffalo, New York, Burlington, Vermont, and other U.S. border cities to access low-cost U.S. carriers. WestJet and Delta Airlines (New York symbol DAL) have also agreed…