DAL: Delta Increases Dividend, Approves $2B Buyback

It will complete the share repurchases by 2016


On Tuesday, Delta Air Lines (DAL) said it will buyback shares and hike its quarterly dividend. Investors liked the news, sending DAL stock up about 2% in morning trading.

Delta AirlinesDAL shares climbed after Delta announced plans to repurchase as much as $2 billion in DAL stock by the end of 2016. The third-largest U.S. airline also indicated that it will boost its quarterly dividend to 9 cents per DAL share, up 50% from 6 cents, the Wall Street Journal noted.

Frontier Airlines Cutting Fares, Charging for Extras
Frontier Airlines Cutting Fares, Charging for Extras

Delta said that its debt fell to $9.1 billion at the end of March, and plans to cut adjusted net debt to $7 billion next year. The airline has reduced its debt by $2.6 billion since 2012.

On Monday, DAL stock closed at $37.55 per share.

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Article printed from InvestorPlace Media, http://investorplace.com/2014/05/dal-delta-increases-dividend-approves-2b-buyback/.

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