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Topic: Allegiant Announces One-Time Dividend Of $2/share
Username: FATFlyer
Posted 2012-11-14 11:23:32 and read 1475 times.

Allegiant has announced a special one-time dividend of $2/share to shareholders of record as of November 30. The dividend will be paid on December 14.
http://ir.allegiantair.com/releasedetail.cfm?ReleaseID=721022

The cost of the dividend payment is approximately $38 million. As of Sept 30, G4's balance sheet listed $357.1 million in cash and short-term investments.

The last time G4 issued a one-time dividend was on June 1, 2010, the amount of that payment was $0.75/share.

Allegiant currently has no plan to begin issuing a regular quarterly dividend.

Topic: RE: Allegiant Announces One-Time Dividend Of $2/share
Username: mariner
Posted 2012-11-14 11:28:22 and read 1475 times.

Quoting FATFlyer (Thread starter):
Allegiant has announced a special one-time dividend of $2/share to shareholders of record as of November 30. The dividend will be paid on December 14.

Very good news.

I'm still kicking myself that I didn't buy a few Allegiant shares at the time of the IPO.  

mariner

Topic: RE: Allegiant Announces One-Time Dividend Of $2/share
Username: FATFlyer
Posted 2012-11-14 13:02:40 and read 1475 times.

Quoting mariner (Reply 1):
I'm still kicking myself that I didn't buy a few Allegiant shares at the time of the IPO.

You and me both.

Topic: RE: Allegiant Announces One-Time Dividend Of $2/share
Username: rgreenftm
Posted 2012-11-14 13:05:28 and read 1475 times.

I'm kind of surprised any airline is issuing a dividend in this environment. It would seem they would want to hoard cash for the inevitable down turn that seems to be pretty near cyclical these days.

Topic: RE: Allegiant Announces One-Time Dividend Of $2/share
Username: slcdeltarumd11
Posted 2012-11-14 13:12:51 and read 1475 times.

Cool news! Nice to see Allegiant Giving back. It just seems to be such a well run airline who makes great decisions

Topic: RE: Allegiant Announces One-Time Dividend Of $2/share
Username: ouboy79
Posted 2012-11-14 13:19:53 and read 1475 times.

Quoting rgreenftm (Reply 3):
I'm kind of surprised any airline is issuing a dividend in this environment. It would seem they would want to hoard cash for the inevitable down turn that seems to be pretty near cyclical these days.

They have relatively very low costs and target markets that are probably more resistant to any downturn. Consider how well they are doing out of Rust Belt cities that haven't had strong recoveries like some oil/gas cities to vacation areas.

Topic: RE: Allegiant Announces One-Time Dividend Of $2/share
Username: N908AW
Posted 2012-11-15 08:19:15 and read 1476 times.

Quoting rgreenftm (Reply 3):
I'm kind of surprised any airline is issuing a dividend in this environment. It would seem they would want to hoard cash for the inevitable down turn that seems to be pretty near cyclical these days.

Allegiant has had pretty darn consistent growth and revenue for quite some time -- two very good reasons for a dividend.

Topic: RE: Allegiant Announces One-Time Dividend Of $2/share
Username: ytib
Posted 2012-11-15 08:25:09 and read 1476 times.

Quoting slcdeltarumd11 (Reply 4):
Cool news! Nice to see Allegiant Giving back. It just seems to be such a well run airline who makes great decisions

Agree, except for the word 'airline', it is a 'travel company'
  

Topic: RE: Allegiant Announces One-Time Dividend Of $2/share
Username: FATFlyer
Posted 2012-11-15 09:03:09 and read 1476 times.

Quoting rgreenftm (Reply 3):
I'm kind of surprised any airline is issuing a dividend in this environment. It would seem they would want to hoard cash for the inevitable down turn that seems to be pretty near cyclical these days.

Allegiant will still have roughly $320 million in cash/short-term investments after the dividend. Total operating expenses in the last quarter were roughly $188 million. I think they still will have a pretty good sized hoard.

Topic: RE: Allegiant Announces One-Time Dividend Of $2/share
Username: diverdave
Posted 2012-11-15 10:55:42 and read 1474 times.

Quoting rgreenftm (Reply 3):
I'm kind of surprised any airline is issuing a dividend in this environment. It would seem they would want to hoard cash for the inevitable down turn that seems to be pretty near cyclical these days.

It's quite likely they are issuing the dividend before the expiration of the Bush tax cuts, which included a special lower tax rate for qualifying dividends. The maximum tax rate is 15% right now, could go as high as 39.6% on 1/1/2013.

David


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