Delta Air Lines (DAL): Expected Dividend Payment Analysis
Delta Air Lines (DAL) has announced a dividend payout of $0.1 per share with a record date of August 07, 2023, and an ex-dividend date of July 14, 2023. This marks a noteworthy event for shareholders, representing the airline's first dividend declaration since its last payment of $0.4 per share made on March 12, 2020.
The ex-dividend date, set to July 14, 2023, carries significant importance for investors planning to buy or sell DAL's shares. According to standard stock market rules, any purchase made on or after the ex-dividend date won't be eligible for the upcoming dividend. Instead, the seller retains the right to the dividend payment. Therefore, potential investors interested in receiving this dividend must ensure that they purchase the shares before the ex-dividend date.
There's a noticeable drop in the dividend amount from $0.4 in March 2020 to $0.1 in August 2023. This reduction may be attributed to a variety of factors. The primary factor, undeniably, was the financial turmoil caused by the COVID-19 pandemic, which heavily impacted the global aviation industry. Airlines, including Delta Air Lines, faced unprecedented challenges leading to decreased revenues and increased costs. Therefore, a dividend cut during these trying times was an inevitable move for the company to preserve cash and maintain financial health.
Now, the announcement of a new dividend payment, albeit lower, could be interpreted as a sign of recovery. It demonstrates the company's confidence in its operational and financial stability to return cash to shareholders while managing its ongoing obligations and investing in future growth.
Investors and analysts should take note that despite the lower dividend rate, it's an indication that the company is at least in a position to distribute dividends again. This could potentially signal an upturn in the company's financial situation, and might reflect a positive outlook for the aviation industry's recovery from the pandemic crisis.
However, the sustainability of the dividend payment and the potential for its increase will significantly depend on Delta Air Lines' future earnings, cash flow stability, and overall recovery pace in the post-pandemic world. Therefore, investors should closely monitor DAL's upcoming earning results and strategic announcements.
The resumed dividend payment also brings Delta Air Lines back into the focus of income investors, who look for stable dividend payments as part of their investment returns. Although the dividend is smaller than pre-pandemic levels, it's a step in the right direction.
While the declared dividend is lower than its predecessor, its resumption after a considerable hiatus, marked by a challenging period, bodes well for shareholders and paints a more optimistic picture of Delta Air Lines' financial health and the recovery of the aviation sector as a whole.
DAL's Indicator enters downward trend
The Aroon Indicator for DAL entered a downward trend on September 28, 2023. Tickeron's A.I.dvisor identified a pattern where the AroonDown red line was above 70 while the AroonUp green line was below 30 for three straight days. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options. A.I.dvisor looked at 166 similar instances where the Aroon Indicator formed such a pattern. In of the 166 cases the stock moved lower. This puts the odds of a downward move at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on September 07, 2023. You may want to consider selling the stock, shorting the stock, or exploring put options on DAL as a result. In of 92 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for DAL turned negative on September 07, 2023. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 45 similar instances when the indicator turned negative. In of the 45 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where DAL declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
Bullish Trend Analysis
The RSI Indicator shows that the ticker has stayed in the oversold zone for 6 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an Uptrend is expected.
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 15 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
DAL may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.935) is normal, around the industry mean (103.649). P/E Ratio (7.930) is within average values for comparable stocks, (15.277). Projected Growth (PEG Ratio) (0.165) is also within normal values, averaging (0.411). Dividend Yield (0.003) settles around the average of (0.041) among similar stocks. P/S Ratio (0.426) is also within normal values, averaging (0.956).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. DAL’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. DAL’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 92, placing this stock worse than average.
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Industry description
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Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
a provider of scheduled air transportation for passengers, freight, and mail services
Industry Airlines
DAL and
Correlation & Price change
A.I.dvisor indicates that over the last year, DAL has been closely correlated with UAL. These tickers have moved in lockstep 85% of the time. This A.I.-generated data suggests there is a high statistical probability that if DAL jumps, then UAL could also see price increases.