Azerbaijan Airlines Confirms Order with Airbus for 12 A320Neo Jets

Azerbaijan Airlines (AZAL), has confirmed that the airline has placed an order with Airbus for 12 A320neo jets. The contract between the two aviation companies was signed by executives on April 6, 2023, in Baku. The order made by AZAL includes both the A320neo and A321neo airliners, which will join the existing fleet of 14 Airbus aircraft.

Almost simultaneously, the BoD of Airbus SE (EPA:AIR, EADSY) has announced that it will be paying its dividend of €1.80 on the 27th of April, an increased payment from last year's comparable dividend. Based on this payment, the dividend yield for the company will be 1.4%, which is fairly typical for the industry.

Over the next year, Airbus’s EPS is forecast to expand by over 67%. If the dividend continues on this path, the payout ratio could be 20% by next year, which looks pretty sustainable going forward.

Since 2013, the dividend has gone from €0.45 total annually to €1.80. This implies that the company grew its distributions at a yearly rate of about 15% over that duration.