Is the Southwest Airlines dividend safe?
At risk
Southwest Airlines pays 1.8% a year, but that takes 90% of its free cash flow.
The numbers behind it
Dividend yield1.8%
Paid out of free cash flow–
Paid out of profit90%
Debt in years of earnings1.3 years
How we decide
We look at how much of its free cash flow a company hands out. Under 60% leaves room, 60% to 90% is tight, and above 90% or heavy debt puts the dividend at risk.
More questions about Southwest Airlines
Data as of Nov 13, 2026.