LUV Dividend Yield 2026: Southwest Airlines Co.

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Data last updated: Aug 29, 2026

Snapshot (as of Aug 29, 2026): Southwest Airlines Co. (LUV) pays a $0.72 annual dividend ($0.18 quarterly), yielding 1.82% at $39.64/share. Next ex-dividend date 2026-09-03. Source: Yahoo Finance, aggregated by MerryDiv.

Dividend Yield: 1.82%

Annual Dividend: $0.72 per share

Payout Ratio: 44.2%

Ex-Dividend Date: 2026-09-03

Dividend Frequency: quarterly

Sector: Industrials

Years of Dividend History: 45

About Southwest Airlines Co. Dividend

Southwest Airlines Co. dividend currently yields 1.78%, backed by a fleet of 728 Boeing 737 aircraft serving 121 destinations across the U.S. and select international markets. LUV pays dividends quarterly, with a trailing annual rate of $0.7200 per share and the next ex-dividend date set for September 3, 2026. With a beta of 1.143, this is not a low-volatility income play. Growth-focused dividend investors will find more to like here than pure income seekers chasing yield.

Dividend Safety

Southwest Airlines Co. pays out 44.2% of earnings as dividends, a payout ratio classified as moderate (40–60%). That level leaves meaningful room between the dividend and earnings, which is a buffer income investors value when airline revenue fluctuates with travel demand. Southwest Airlines Co. dividend safety faces its most direct pressure from the cyclical nature of air travel, where demand and profitability can shift sharply, as the dividend history itself shows.

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. Per-share payments grew from $0.0200 to $0.7200 over that span (2026 is a partial year and excluded from the CAGR calculation). 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%, reflecting the airline industry's exposure to demand shocks.

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 fits growth-and-income investors who prioritize dividend growth over current yield, not those seeking immediate income. At 1.78%, the yield is low (below 2%) and sits below the stock's own 5-year average of 1.93%, so current buyers are getting less income than the historical norm. The 22.0% CAGR over 18 years is the real story here. The trade-off is clear: Southwest Airlines Co. stock offers a history of aggressive dividend growth, but the current yield is modest and the airline sector introduces earnings volatility that a moderate payout ratio only partially cushions.

Recent Southwest Airlines Co. Dividend Payments

Payment Date	Amount per Share
2026-09-03	$0.1800
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

Southwest Airlines Co. Annual Dividend History

Year	Total Dividends
2026	$0.5400
2025	$0.7200
2024	$0.7200
2023	$0.9000
2020	$0.1800

Related Industrials Dividend Stocks

• CAT — Caterpillar Inc. (0.79% yield)
• GE — GE Aerospace (0.50% yield)
• RTX — RTX Corporation (1.36% yield)
• RYCEY — Rolls-Royce Holdings plc (0.69% yield)
• DE — Deere & Company (1.03% yield)
• ETN — Eaton Corporation plc (1.11% yield)

Frequently Asked Questions

Does LUV pay dividends?

Yes, Southwest Airlines Co. (LUV) pays a $0.18 quarterly dividend per share, yielding 1.82%.

How often does Southwest Airlines Co. pay dividends?

Southwest Airlines Co. pays dividends quarterly. The last dividend amount was $0.1800 per share, with the next ex-dividend date on September 3, 2026.

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

The current Southwest Airlines Co. dividend yield is 1.78%, which is below the stock's 5-year average yield of 1.93%. That gap means current buyers are receiving slightly less income than the historical norm.

Has Southwest Airlines Co. ever cut its dividend?

Yes. The available history shows at least one year-over-year decline exceeding 5%. The 2020 annual total dropped sharply to $0.1800 from $0.7000 in 2019, reflecting the impact of the pandemic on airline operations.

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. Per-share payments rose from $0.0200 to $0.7200 over that 18-year window.

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

As an income stock, LUV is a limited fit for investors prioritizing current yield. At 1.78%, the yield is low (below 2%), but the 22.0% CAGR over 18 years makes it more compelling for investors who value dividend growth over immediate income.

Is Southwest Airlines Co. dividend safe?

The 44.2% payout ratio is moderate (40–60%), which provides a buffer between earnings and the dividend. The main risk is the airline industry's cyclicality, which has already produced one significant dividend cut in the available history.

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

Southwest Airlines Co. suits growth-and-income investors who prioritize dividend growth over current yield. The 22.0% CAGR is the draw; the 1.78% current yield and a beta of 1.143 make it a poor fit for conservative income-focused portfolios.

How does Southwest Airlines Co. compare to its own historical yield?

The current LUV dividend yield of 1.78% is below the 5-year average of 1.93%. Investors buying today are accepting a yield that is modestly below what the stock has historically offered.

Latest LUV News

• Is RYAAY a Buy as Strong Traffic Faces Higher Costs and Lower Fares? - TradingView — TradingView
• Southwest Airlines declares quarterly dividend of 18 cents By Investing.com - Investing.com Canada — Investing.com Canada
• Press Release: SOUTHWEST AIRLINES DECLARES 190th QUARTERLY DIVIDEND - Moomoo — Moomoo

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