Delta Air Lines is rejoining Standard & Poor’s 500-stock index for the first time since 2005 when the carrier filed for Chapter 11 bankruptcy protection. The move signals a return to financial stability for Atlanta’s dominant airline.
Delta will be added to the S&P 500 after the close of trading Tuesday, the same day as its first dividend payout in a decade. The company will pay shareholders a dividend of 6 cents a share.
U.S. companies are considered for addition to the S&P 500 based on liquidity, market capitalization of at least $4.6 billion, maintaining at least four consecutive quarters of profit and other factors. Being listed in the S&P 500 index could increase demand for Delta stock.
Delta, which will replace BMC Software in the index, will also be included in the S&P 500 airlines sub-industry index.
About the Author
