LUV Dividend Yield 2026: Southwest Airlines Co.

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Data last updated: Jul 18, 2026

Snapshot (as of Jul 18, 2026): Southwest Airlines Co. (LUV) pays a $0.72 annual dividend ($0.18 quarterly), yielding 1.50% at $48.08/share. Next ex-dividend date 2026-06-11. Source: Yahoo Finance, aggregated by MerryDiv.

Dividend Yield: 1.50%

Annual Dividend: $0.72 per share

Payout Ratio: 47.1%

Ex-Dividend Date: 2026-06-11

Dividend Frequency: quarterly

Sector: Industrials

Years of Dividend History: 45

About Southwest Airlines Co. Dividend

Southwest Airlines Co. dividend pays $0.72 per share annually, with shares currently yielding 1.49%. LUV operates a fleet of 728 Boeing 737 aircraft across 121 destinations, connecting 42 U.S. states and 10 nearby international countries including Mexico, Jamaica, and the Bahamas. The company pays dividends quarterly, with the last dividend of $0.18 per share and an upcoming ex-dividend date of June 11, 2026. With a beta of 1.118, LUV stock carries slightly above-average market volatility, making it a better fit for growth-and-income investors than pure income seekers.

Dividend Safety

Southwest Airlines Co. pays out 47.1% of earnings as dividends, a payout ratio classified as moderate (40–60%). That level leaves a meaningful buffer between earnings and the dividend obligation, which supports Southwest Airlines Co. dividend safety at the current $0.72 annual rate. The most significant data-supported pressure point is the airline industry itself: passenger demand can shift sharply with economic conditions, and the history table shows a steep drop in annual dividends paid during 2020, reflecting how quickly that pressure can materialize.

Southwest Airlines Co. (LUV) Dividend Growth Rate, CAGR, and History

Southwest Airlines Co. dividend history shows a CAGR of 22.0% per year from 2007 to 2025. The per-share dividend grew from $0.02 to $0.72 over that window (2026 is a partial year and excluded from the CAGR calculation, Southwest Airlines Co. dividend 2026 data remains incomplete). The largest annual increase in the window was 271.4% in 2013, though the history also contains at least one year-over-year decline exceeding 5%, so the growth path has not been linear.

Southwest Airlines Co. Dividend Growth Rate (CAGR)

Period	CAGR	From	To
5-Year	+3.5%	$0.60 (2018)	$0.72 (2025)
10-Year	+18.7%	$0.13 (2013)	$0.72 (2025)

Is Southwest Airlines Co. a Good Dividend Stock?

LUV stock fits growth-and-income investors who care more about dividend growth rate than current income level. The yield sits at 1.49%, which falls in the low (below 2%) classification and runs below the 5-year average yield of 1.61%. That gap is modest, but it confirms the stock does not lead with income. What Southwest Airlines Co. offers instead is a long dividend history spanning 45 years and a 22.0% CAGR over the 2007-to-2025 window. The trade-off is straightforward: an investor gets a fast-growing dividend from a U.S.-focused passenger airline, but accepts a yield that will not move the needle on current income.

Recent Southwest Airlines Co. Dividend Payments

Payment Date	Amount per Share
2026-06-11	$0.1800
2026-03-12	$0.1800
2025-12-26	$0.1800
2025-09-03	$0.1800
2025-06-18	$0.1800
2025-03-12	$0.1800
2024-12-26	$0.1800
2024-09-04	$0.1800
2024-06-18	$0.1800
2024-03-05	$0.1800

Southwest Airlines Co. Annual Dividend History

Year	Total Dividends
2026	$0.3600
2025	$0.7200
2024	$0.7200
2023	$0.9000
2020	$0.1800

Related Industrials Dividend Stocks

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• RTX — RTX Corporation (1.43% yield)
• DE — Deere & Company (1.04% yield)
• RYCEY — Rolls-Royce Holdings plc (0.66% yield)
• ETN — Eaton Corporation plc (1.07% yield)

Frequently Asked Questions

How often does Southwest Airlines Co. pay dividends?

Southwest Airlines Co. pays dividends quarterly. The last dividend was $0.18 per share, and the next ex-dividend date is June 11, 2026.

What is Southwest Airlines Co.'s current dividend yield?

The current Southwest Airlines Co. dividend yield is 1.49%. That sits below the stock's own 5-year average yield of 1.61%, placing it in the low (below 2%) yield category.

Has Southwest Airlines Co. ever cut its dividend?

Yes. The annual dividend history shows a sharp decline in 2020, dropping to $0.18 from $0.70 in 2019, a year-over-year decline exceeding 5%. The available data window runs from 2007 to 2025.

How fast has Southwest Airlines Co. grown its dividend?

Southwest Airlines Co. has grown its dividend at a compound annual growth rate (CAGR) of 22.0% per year from 2007 to 2025. The per-share dividend rose from $0.02 to $0.72 over that period.

Is Southwest Airlines Co. a good dividend stock for income investors?

As an income stock, LUV is limited by its 1.49% yield, which falls below its own 5-year average of 1.61%. The 47.1% payout ratio supports the current dividend, but the stock's profile fits growth-and-income investors better than those seeking high current income.

Is Southwest Airlines Co. dividend safe?

The 47.1% payout ratio is moderate (40–60%), leaving a buffer that supports the current $0.72 annual rate. However, the 2020 history shows the dividend can be cut sharply when airline passenger demand falls.

What type of investor is Southwest Airlines Co. best suited for?

LUV suits growth-and-income investors who prioritize dividend growth over current yield. A 22.0% CAGR over 18 years is the stock's defining characteristic, not its 1.49% current yield.

Latest LUV News

• Best Airline Stocks to Buy in 2026 and How to Invest - The Motley Fool — The Motley Fool
• Southwest Airlines leaves rivals flat-footed as bankrupt carrier folds - thestreet.com — thestreet.com
• Morgan Stanley resets Southwest Airlines stock price target | LUV - thestreet.com — thestreet.com

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