Air New Zealand Limited (ASX: AIZ) offers a 8% dividend yield, is worth buying?
The flagship airline of New Zealand carries around 17 million passengers a year with a lot of activity in the Pacific Rim between New Zealand, Australia, Asia and the Americas. Air New Zealand’s consolidated operating revenue was $5.5 billion in the 2018 financial year, generated by a fleet of over 100 aircraft and over 12,500 employees based globally.
Is Air New Zealand A Good Dividend Share?
The company is steadily growing its dividend for shareholders, although Australian investors need to account for foreign currency movements.
The airline has plans to become an even better business by investing in eight Boeing 787-10 Dreamliner aircraft. The sticker price for these aircraft is US$2.7 billion, but the company has negotiated a sizeable discount to that price.
The new aircraft will save around 190,000 tonnes of carbon each year.
Air New Zealand CEO Christopher Luxon said: “The 787-10 is longer and even more fuel efficient. However, the game change for us has been that by working closely with Boeing, we’ve ensured the 787-10 will meet our network needs, including the ability to fly missions similar to our current 777-200 fleet.”
If I had to pick one airline for dividends, it would be Air New Zealand. However, I would prefer owning one of the reliable ASX shares in the free report below for dividends instead.
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