This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

10 Stocks With Special Dividend Potential

4. Allegiant Travel (ALGT) is a regional air carrier, flying passengers from smaller cities that have little service from other airlines, to leisure destinations including Las Vegas, Phoenix, Ariz., and Orlando, Fla. The company is headquartered in Las Vegas and the stock is rated a B-plus (Good) by TheStreet Ratings.

First-quarter net income was $22.6 million, or $1.12 per share, down from $28.2 million, or $1.37 per share, during the first quarter of 2009. The company blamed a 72% increase in fuel costs for the decline in earnings.

Allegiant paid a special one-time dividend of 75 cents a share on June 2. The company does not regularly pay dividends.

According to Bank of America Merrill Lynch analyst Glenn Engel, whose firm reinstated coverage of Allegiant's stock on June 2, Allegiant has "the lowest unit costs among airlines," more than 20% lower than AirTran Holdings (AAI) and Southwest Airlines (LUV.). Allegiant keeps costs low by flying older planes than most other carriers, and also is described by Engel as an "early unbundler," generating "more fees per passenger than any other airline."

Although the company has remained profitable with industry-leading margins in such challenging economic conditions, Engel is neutral on the shares, citing "above average oil sensitivity" and risks associated with expansion. His twelve-month target for the Allegiant's shares is $58, or 16% above Friday's closing price of $50.

8 of 11

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
AVX $14.25 0.00%
BKE $50.30 0.00%
DO $30.43 0.00%
HTLD $25.17 0.00%
MCRL $14.93 0.00%


DOW 18,132.70 -81.72 -0.45%
S&P 500 2,104.50 -6.24 -0.30%
NASDAQ 4,963.5270 -24.3630 -0.49%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs