Air Travel Is Booming: Buy These 2 Dividend Stocks

Air travel in Canada continued to attract a high number of travellers in 2017. The trends have catapulted Canadian aviation stocks to record numbers. With that in mind, let’s look at 2 aviation stocks with attractive dividends for investors.

Chorus Aviation Inc. (TSX:CHR) is a Canadian holding company which controls regional airliner Jazz Aviation LP. The stock was up 19.5% in 2017 as of the end of the noon hour on October 12. The company released its second quarter results on August 10.

Adjusted net earnings grew 22.3% year-over-year to $26.7 million or $0.22 per share. In the earnings call Chorus reiterated its ambition to become a leader in regional aviation. The stock boasts a dividend of $0.04 per share representing a 5.5% dividend yield.

CAE Inc. (TSX:CAE)(NYSE:CAE) is a Montreal-based manufacturer of simulation and modelling technologies, as well as training services to airlines, defense customers, and others. Shares have experienced growth of 14.4% in 2017 and 15% year over year.

CAE released its fiscal 2018 first quarter results on August 10. Revenue increased to $698.9 million compared to $651.6 million the previous year. Operating profit was up to $97.8 million in comparison to $89 million in fiscal Q1 2017. The stock offers a dividend of $0.09 per share with a 1.7% dividend yield.

Investors should be aware of some of the risks involved. Air travel is expensive and thus vulnerable to financial shocks. Rising oil prices could also generate downward pressure.

Dividend Stocks