The Flight Centre Tavel Group Ltd (ASX: FLT) share price has certainly had a bumpy ascent lately. Flight Centre shares are actually performing rather well though. Over the year to date, this ASX travel company has gained around 9%.
That compares well against the S&P/ASX 200 Index (ASX: XJO), which remains down around 0.5% over the same period. Flight Centre is also up by 3.5% over the past 12 months. However, that comes in under the ASX 200’s 9% gain. But in addition to some healthy growth, Flight Centre used to also be known as an ASX dividend share.
2019 saw the travel share pay out its highest dividends on record, showering investors with $3.07 in cash per share over the year. That came after 8 years of consistent dividend payments. So, many investors might be wondering if Flight Centre shares still pay dividends. Well, let’s take a look.
Flight Centre dividends remain grounded
Unfortunately, all has been quiet on the Flight Centre dividend front for a few years now. The company’s last dividend was paid in early 2020. That was a payment of 40 cents per share, fully franked. But that was the last cash dividend investors have received from Flight Centre to date.
It goes without saying the pandemic has hit Flight Centre hard. The company has been struggling with waves of travel restrictions and uncertainties for more than two years now. During Flight Centre’s latest earnings report delivered back in February, the company reported a 98.1% increase in revenue to $315.7 million, with a $1.5 billion strong balance sheet. However, the company also reported an underlying loss after tax of $188 million.
Since a company typically pays out dividends from profits, it doesn’t look like Flight Centre will be in a position to resume dividend payments soon. Or at least until its books are back in the black. We see similar trends amongst other ASX travel shares such as Qantas Airways Ltd (ASX: QAN) and Corporate Travel Management Ltd (ASX: CTD).
So it looks as though FLight Centre investors will have to wait at least a little longer to see their dividends return.
At the current Flight Centre share price, this ASX travel share has a market capitalisation of $3.82 billion.
The post Do Flight Centre shares pay dividends? appeared first on The Motley Fool Australia.
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Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Corporate Travel Management Limited and Flight Centre Travel Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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