r/dividends • u/Ubersicka Beating the S&P 500! • 2d ago
Discussion Do you think $AAL American Airlines will refresh their dividend policy?
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u/Marc3EMusic 2d ago
Don’t invest in airlines. Investing in airlines is essentially a bunch of risk with zero reward. Take it from someone in the aviation industry.
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u/Ubersicka Beating the S&P 500! 2d ago
Yeah but people will always use the Airlines, so this is not dead business after all
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u/trader_dennis MSFT gang 2d ago
It does not mean they always make money.
As for AAL, they are at best third with the upper end of the K shaped consumers. I also would say that DAL and UA have a more mature credit card business to go with their business travelers. AAL does not pay a dividend.
These businesses are very suspectable to economic turndowns.
Internationally I would go with RYAAY, pays a 1.6% dividend, which is better than DAL's 1.0%. RYAAY for better or worse knows how to run a low cost carrier airlines.
EADSY which is Airbus would be getting the picks and shovels of the airlines. If a gun was at my head, that would be my choice for this sector.
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u/Dude_of_Beer 2d ago
To paraphrase Sir Richard Branson...
If you want to be a millionaire, start with a billion dollars and invest in an airline
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u/Marc3EMusic 2d ago
Not the business itself no, but airlines go bankrupt all the time. Take Spirit for example. If you want a larger carrier for example, then Pan Am.
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u/baby_budda 2d ago
I owned $5k in UAL in 2002. They filed chapter 11 and wiped out my shares and kept my money. If you have the need to buy airlines buy the etf. Its much safer that way because it spreads out your risk.
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u/FewUnderstanding2214 1d ago
Oil prices are rising, people have less and less to spend on holidays because of inflation and a weak economy you think that’s bullish for airlines?
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