Topic: How To Invest

Dividend Advisor Hotline – Friday, March 22, 2019

Article Excerpt

WESTJET AIRLINES LTD., $19.10, Toronto symbol WJA, serves over 100 destinations in North America, Central America, the Caribbean and Europe. The company 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 2.9%. WestJet has grounded all of its Boeing 737 Max 8 aircraft. That came in the wake of the Ethiopian Airlines disaster on March 10, 2019 that killed all 157 people on board, including 18 Canadians. The grounding order affects just 13, or 8%, of the company’s 162-plane fleet. WestJet uses its 737 Max 8 to operate about 35 flights daily. While it expects some delays and cancellations in the early stages of the grounding, it is swapping aircraft and making flight changes to reduce the impact on passengers. The company’s dividend has grown an average of 3.1% annually over the last 5 years. Its TSI Dividend Sustainability Rating is Above Average. OUR RECOMMENDATION: WestJet is still a buy. WestJet recent coverage …