Is Southwest Airlines Co. a good dividend stock?

Southwest Airlines Co. (LUV) is a dividend-paying stock with a current dividend yield of 1.49%. Review its dividend history, payout consistency and growth to judge whether it fits your income strategy.

What is LUV's dividend yield?

The dividend yield for LUV stock is currently 1.49%.

How much does LUV pay in dividends per year?

Southwest Airlines Co. pays an annual dividend of $0.7200 per share over the trailing twelve months.

How often does LUV pay dividends?

LUV stock pays dividends quarterly.

Is LUV's dividend growing?

Southwest Airlines Co.'s 3-year dividend CAGR is 10.06%.

LUV Stock Price, Chart, Stats & News

Southwest Airlines Co.

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Overview Dividend safety Dividends Fundamentals

Southwest Airlines Co. (LUV) is a dividend-paying stock with a current dividend yield of 1.49% as of Jul 10, 2026. It pays $0.7200 per share over the trailing twelve months and distributes quarterly.

23.67B

Market cap

30.85x

Current P/E

16.26x

Forward P/E

1.49%

Dividend yield

$0.7200

LUV dividend

Dividend safety

Strong

Dividend coverage looks healthy — LUV pays out about 46% of earnings.

See the safety analysis

LUV chart

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Fundamentals

Gross margin	17.44%
Operating margin	1.53%
Pretax margin	2.01%
Net margin	1.57%
Effective tax rate	21.67%
ROA	1.52%
ROE	5.33%
D/E	0.75x
Interest coverage ratio	3.75x

All financials

LUV valuation

P/E	30.85x
P/S	0.69x
P/B	2.42x
P/CF	10.46x
P/FCF	-23.28x
P/OCF	10.46x
PEG	1.68x
EV multiple	7.40x

About

Industrials

Sector

Airlines, Airports & Air Services

Industry

Southwest Airlines Co. functions as a passenger airline, offering scheduled air travel services predominantly across the United States and to select neighboring international markets. As of December 31, 2021, the company maintained a consistent fleet of 728 Boeing 737 aircraft. Its extensive route network served 121 different locations, spanning 42 U.