Topic: How To Invest

Dividend Advisor Hotline – Friday, May 17, 2019

Article Excerpt

WESTJET AIRLINES LTD., $30.10, Toronto symbol WJA, serves over 100 destinations in North America, Central America, the Caribbean and Europe. The stock jumped 62% this week after the company accepted a $31.00-a-share all-cash takeover offer from Onex Corp. (Toronto symbol ONEX). Onex’s $31.00 takeover offer represents a 162.7% gain since we first recommended WestJet in our publications at $11.80 a share in December 2009. Assuming WestJet shareholders and regulators approve, Onex expects to the complete the takeover in late 2019 or early 2020. Until then, the company will continue to pay its current quarterly dividend of $0.14 a share. The annual rate of $0.56 yields 1.9%. That dividend has grown an average of 3.1% annually over the last 5 years. WestJet’s TSI Dividend Sustainability Rating is Above Average. OUR RECOMMENDATION: WestJet’s shares are now trading just below Onex’s offer, which indicates investors do not expect a higher bid. Investors should wait to tender their shares to the offer and so get the full $31.00 and…

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