Southwest Airlines Co. (NYSE: LUV) is living up to what we expected last week. After Delta Air Lines Inc. (NYSE: DAL) jumped the gun with a dividend declaration and new stock buyback plan, Southwest is making sure that its shareholders are being kept current in the dividend and stock buyback game.

Southwest Airlines announced Wednesday morning that its board of directors has quadrupled its quarterly dividend payment to $0.04 per share from $0.01 per share. The increase is for shareholders of record at the close of business on June 5, 2013, and will be paid on June 26, 2013.

Another boost is coming from the buyback plan. The existing $1 billion share repurchase program is being expanded to $1.5 billion. On top of that, an initial $250 million in its common stock will be repurchased under an accelerated stock repurchase program.

The new dividend will amount to a yield of 1.1%, based on the $13.98 close on Tuesday. Shares currently are trading higher by almost 3% at $14.39. That $1.5 billion share buyback compares to a market cap of $10.41.

As we have said before, United Continental Holdings Inc. (NYSE: UAL) is the main dividend sinner in the sector. The airline is considered the healthiest legacy carrier now that United and Continental have amalgamated into one company, and its market cap is $11.6 billion now that shares have rallied a whopping 70% in the past six months.

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