The following video is part of our "Motley Fool Conversations" series in which industrials editor/analyst Brendan Byrnes and consumer goods editor/analyst Austin Smith discuss topics across the investing world.
In today's edition, Brendan and Austin discuss recent news from Southwest Airlines. Southwest is the only major airline to pay a dividend, and the company recently announced that it will more than double the dividend to $0.01 per share, good for about a 0.5% yield. Southwest also raised its ceiling for share repurchases to $1 billion. The company announced that it will delay delivery of 30 Boeing 737s for four years, which will save it more than $1 billion through 2014. Southwest is delaying the purchases in order to focus on achieving its goal of 15% ROIC. Watch below to find out if Brendan thinks these are good moves for the company and if it rates as a buy in his book.
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