Easyjet (EZJ) reported in line interim results today & they make most of their profits in the second half, so I won't dwell too much on the detail which you can read for yourself. In this they did however say the following:
"We are confident that over the full year we will again grow passenger numbers, revenue and profit. As a result of easyJet balance sheet and the Boards confidence in the future success of the business, the annual dividend payout ratio will increase by a quarter to 50% subject to AGM approval."
This is something the founder has been arguing for and probably reflects the maturing of the business. Since they say they are trading in line it should be safe to assume that current forecasts of around 145p should be OK for now. With the new payout policy detailed above this would however suggest a full year dividend (which is paid in one payment in the first quarter of the year) could be more like 72.5p rather than the current 65.1p forecast. On this basis at the current price of around 1480p this would leave this well managed group looking good value on just 10.2x this years earnings with a dividend yield of 4.9%.
On the technical front in the chart below you can see that they are also cruising at a low altitude compared to their highs around 1800p last year. Thus if they were able to return to those kind of levels it could offer potential returns of 20%+ returns from here, although in current markets obviously nothing guaranteed. While looking at the 3 year chart, given the recent downtrend, a longer term support area appears to be in the 1200p to 1250p region.