Southwest Airlines Co.
LUVIndustrials · Stock · quarterly payer
Forward Yield
1.75%
Annual Dividend
$0.72
Payout Ratio
45%
5-Yr Growth
0.0%
Ex-Date
Sep 3, 2026
Frequency
Quarterly
Summary
As of September 2026, Southwest Airlines Co. (LUV) yields 1.75% ($0.72 per share annually), with a blended fair-value estimate of $76.20 — +86% upside, so it screens as undervalued. Dividend safety grade: A (92/100).
Is LUV a good dividend stock?
YesSouthwest Airlines Co. (LUV) pays a quarterly dividend yielding 1.75% ($0.72/yr), with 0 years of growth and a dividend-safety grade of A. It scores well across payout coverage, growth history and safety — a dependable income holding.
Advantages
- Never cut its dividend on record
- Comfortable payout ratio (45%)
- Top-tier dividend safety score
Risks
- Share price is down over the past 5 years
Key Data
- Dividend Yield
- 1.75%
- Payout Ratio
- 45%
- Annual Dividend
- $0.72
- 5-Yr Avg Growth
- 0.0%
- Ex-Dividend Date
- Sep 3, 2026
- Years of Growth
- 0
- Frequency
- quarterly
- Beta
- 1.12
- Market Cap
- $20.1B
- P/E Ratio
- 25.6
- 5-Yr Total Return
- -13%
- 52-Week Range
- $29.26 – $55.11
- Dividend Safety
- A · 92/100
- Ever Cut?
- No
Frequently Asked Questions
LUV Price — Last 12 Months
Daily close
Price Return
1 Year
+35%
3 Years
+84%
5 Years
-13%
52-Week Range
$29.26 – $55.11
Price change over each period (excludes dividends). Past performance doesn't guarantee future results.
What is LUV worth?
Undervaluedlow confidenceOur blended fair-value estimate for Southwest Airlines Co. is $76.20 per share, versus a market price of $40.98. That implies 86% of upside — a margin of safety of about 46%.
Fair Value
$76.20
Current Price
$40.98
Upside
+86%
Margin of Safety
46%
How we get there
Discounted cash flow
Discounts projected free cash flow back to today.
Dividend discount
Discounts the future dividend stream back to today.
Earnings multiple (Graham)
Graham's earnings-multiple formula, anchored to bond yields.
At today's price, the market is pricing in about -10.0% annual free-cash-flow growth. We model 17.7% — below our estimate, leaving room for upside if the business executes.
Assumptions: 9.9% discount rate (CAPM), 17.7% stage-1 growth, 2.5% terminal growth, $1.60 EPS, $0.72 annual dividend. Updated weekly.
Fair-value estimates are model output for educational purposes only — not investment advice or a price target.
LUV Dividend Safety Score
Very Safe
SmarterDividends' proprietary score, backtested against which dividends were actually cut over 15+ years (0.78 AUC). It blends a validated cut-risk model (growth streak, cut history) with current payout, cash-flow and debt. Higher is safer · not investment advice.
Dividend Growth
Total dividends per share by year
Dividend History
Full LUV dividend history →| Ex-Date | Pay Date | Amount | Type |
|---|---|---|---|
| Sep 3, 2026 | — | $0.1800 | regular |
| Jun 11, 2026 | — | $0.1800 | regular |
| Mar 12, 2026 | — | $0.1800 | regular |
| Dec 26, 2025 | — | $0.1800 | regular |
| Sep 3, 2025 | — | $0.1800 | regular |
| Jun 18, 2025 | — | $0.1800 | regular |
| Mar 12, 2025 | — | $0.1800 | regular |
| Dec 26, 2024 | — | $0.1800 | regular |
| Sep 4, 2024 | — | $0.1800 | regular |
| Jun 18, 2024 | — | $0.1800 | regular |
| Mar 5, 2024 | — | $0.1800 | regular |
| Dec 20, 2023 | — | $0.1800 | regular |
| Sep 5, 2023 | — | $0.1800 | regular |
| Jun 20, 2023 | — | $0.1800 | regular |
Income Calculator
At $0.72 / yr per share
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