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.