Analysis – Alaska Air Group Inc. Increases Dividend by 38%

ALK

Alaska Air Group Incorporated announced a regular quarterly dividend of $0.275, a 38 percent increase from the prior rate of $0.20 per share. The dividend will be paid at the new higher rate on March 8, 2016, to shareholders of record at close of business on February 23, 2016.

Date Quarterly Dividend
2/23/2016 0.275
11/13/2015 0.2
8/14/2015 0.2
5/19/2015 0.2
2/20/2015 0.2
11/14/2014 0.125
8/15/2014 0.125
5/21/2014 0.125
2/21/2014 0.125
11/15/2013 0.1
8/2/2013 0.1

Analysis of Valuation of Alaska Air Group Inc. (Symbol ALK).

Alaska Air Group is trading at the top of its average price/sale (P/S) range.  Alaska Air Group is trading at the top pof its average historical dividend yield. 

Price 1/22/16 % Yield 5 Year Div. Growth Rate  SPS    2016 P/S Ratio 10 yr P/S  Low 10 yr P/S  High 5 yr max Yield % 5 yr lowest Yield %
$72.86 1.51% 17% 49.65 1.36 0.05 1.36 1.51% 0.27%

Alaska Air Group Inc. Dividend Yield Chart (Click to enlarge) ALK2 Explanation:  Dividend growth stocks may be valued upon historical relative price/sales and current yield analysis. Dividend stocks trading at a low historical price/sales (P/S) ratio should be viewed more highly to investors due to their depressed valuation versus other higher P/S ratio stocks.  Max P/S price target is based upon company reaching its highest historical P/S ratio.  Dividend stocks should also be viewed favorably when the current yield is above historical readings for the past 10 years.  Further information on evaluating dividend growth candidates can be found at http://seekingalpha.com/author/timothy-mcintosh/articles

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