Delta launches quarterly dividend
Atlanta-based Delta Air Lines announced Wednesday it will begin paying shareholders a quarterly dividend, a sign of its improved standing after years of financial struggles for the airline industry.
Delta said it will begin with a dividend of 6 cents per share to be paid Sept. 10. The company also plans to buy back $500 million of shares by June 30, 2016. It said the two moves combined will return more than $1 billion to shareholders over the next three years, and are part of a five-year financial plan announced by the company.
In recent years, Delta had been concentrating on reducing its substantial debt levels, from $17 billion at the end of 2009 to less than $12 billion at the end of 2012. But the investor community had been pressing Delta to focus on returning capital to shareholders.
Delta said it still aims to reduce debt levels further, eventually to $7 billion, as well as invest $2 billion to $2.5 billion annually in the business and contribute $1 billion extra to its pension plans over the next five years.
About the Author
As business team lead, Kelly Yamanouchi edits and writes business stories. She graduated from Harvard and has a master's degree from Northwestern.
