Southwest Airlines pays a 0.6% dividend yield and its forward P/E is 16.6. It has a very strong U.S. footprint and, like Alaska Air Group, has one of the lowest debt-to-equity ratios, coming in at 39%.
Southwest Airlines has been increasing its fares faster than the industry, while also maintaining its market share. Southwest’s profit was up over 25% last quarter and bookings for November and December flights have been encouraging, according to management. The airline sees the opportunity to expand to destinations beyond the 48 states in the U.S., with management targeting up to 50 locations worldwide.