Delta Air Lines Adds Routes, & Passengers

This week I'm seeking a high-yield and growing stock from the industrials sector. 

That sector includes twenty-three industries all related to designing, fabricating and servicing stuff we want and use. The industrials industries range from aerospace and defense to waste management with all the transportation, business services, and equipment required in between.

Today I'm reviewing a large-cap airlines firm named Delta Air Lines, Inc. Its trading ticker symbol is DAL.

Delta Air Lines Inc provides scheduled air transportation for passengers and cargo throughout the United States and across the world.

The company operates through two segments, Airline and Refinery. Its route network is centered on a system of hubs, international gateways, and airports in Amsterdam, Atlanta, Boston, Detroit, London-Heathrow, Los Angeles, Minneapolis-St. Paul, New York-LaGuardia, New York-JFK, Paris-Charles de Gaulle, Salt Lake City, Seattle, and Tokyo-Narita.

The company sells its tickets through various distribution channels. It also provides aircraft maintenance, repair, and overhaul services; staffing, aviation, and professional security and training services to third parties; and vacation packages to third-party consumers.

As of February 9, 2018, the company operated a fleet of approximately 800 aircraft. 

Delta Air Lines, Inc. was founded in 1924 and is headquartered in Atlanta, Georgia.

I use three key data points to gauge the value of any dividend equity or fund likeDelta Air Lines, Inc. (DALDAL): 

(1) Price

(2) Dividends

(3) Returns

Besides those three, four more keys will finally unlock an equity or fund in which to invest.

But those first three primary keys, best tell whether a company has made, is making, and will make money. 

DAL Price

Delta's price per share was $57.43 at yesterday's market close. A year ago its price was $47.70 for a gain of $9.90 per share.  

Assuming Delta's price will trade in the range of $45 to $70 next year, perhaps that $9.90 gain could be realized in the coming year and move DAL's current $57.43 price to $67.30 by late-August, 2019. 

DAL Dividends

Delta's most recent quarterly annually increasing dividend was $0.35declared July 12th and paid August 16th.

At it's most recent quarterly pay rate, DAL's 2018 annual dividend is calculated at $1.40 yielding 2.43% at yesterday's closing $57.43 price.

Gains For DAL?

Adding the $1.40 estimated annual dividend to the $9.90 year over year price gain for DAL makes an $11.30gross annual per share gain, which will be reduced by costs to trade the shares.  

A little under $1,000.00 invested today at the $57.43 recent price buys 17 Delta Air Lines, Inc. (DAL) shares. 

A $10 broker fee paid half at purchase and half at sale costs about $0.59 per share, subtracting that $0.59 brokerage cost from the estimated $11.30 gross gain leaves a net gain of $10.71 X 17 shares = $182.07 or an 18% net gain on a $976.31 investment.

Therefore, Delta Air Lines, Inc. whose trading ticker symbol is DAL, now shows a possible 18% net gain including a 2.28% dividend yield. 

Eighteen brokers cover this stock:

Twelve say "buy" DAL.

Four say DAL will "outperform" other airlines.

Two say DAL is a stock to "hold".

So, the analyst consensus recommendation number is 1.44 or "buy".

The median price target set by those eighteen brokers is just $0.24 under the $67.30 year over year price target I named. 

Y Charts has data on this firm, too. Y Charts has rated DAL "attractive" for an overall "Y" rating; it has "good" for a value score, and "strong" for DAL's fundamental score. Y Charts rated Delta "2.76% over" for aHistoric Valuation score based on a historic $55.89 valuation per share.

So, you could look at all those various numbers this way, Delta Air Lines, Inc. (DAL). has made money, is making money, and could net an 18% annual gain including a 2.44% dividend yield. It could be more, it could be less.

The above speculation is based on past year performance. Actual results remain to be seen. Those results will determine if Delta Air Lines, Inc. (DAL) is worth your time and money.

Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a solicitation, ...

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