Qantas Airways Limited (ASX: QAN) is one of the most famous ASX shares on the S&P/ASX 200 Index (ASX: XJO). It’s not one of the largest. But the Flying Kangaroo certainly occupies a special place in the hearts and minds of many investors, thanks in large part to the company’s long history and famous brand name.
But in recent years, Qantas has been known for different reasons. In 2020, it became one of the ASX shares hit hardest by the outbreak of the coronavirus pandemic. Indeed, between 21 February and 20 March that year, the Qantas share price fell more than 63%, which was a drop close to double that of the broader market.
But since then, Qantas also become known as a COVID recovery play. In the month following 20 March 2020, Qantas shares rose more than 50%. Even today, two years on from the company’s 2020 lows, the Qantas share price remains an impressive 120% or so above those nadirs.
So now this tumultuous time is past Qantas, and global travel is getting back on its feet, many investors might be wondering if things have gotten back to normal for Qantas. After all, this company used to be known as a decent ASX dividend share. Between 2016 and 2019, Qantas grew its annual dividend from 7 cents per share to 25 cents per share.
So are Qantas shares back to providing a yield for income investors yet?
Qantas shares: Dividend not on the radar yet
Well, unfortunately, the answer is a resounding no. Qantas has not paid a dividend since the latter half of 2019. This streak was recently continued in February. Qantas dropped its half-year earnings report last month, which made no mention of a dividend coming investors’ way.
And looking at the company’s earnings, it’s obvious why. For a company to pay out a dividend, it usually has to be healthily profitable. And Qantas is simply not right now. The company’s earnings revealed an underlying loss before tax of $1.28 billion for the six months to 31 December 2021.
A loss of that magnitude pretty much rules out a dividend in the immediate future for Qantas shareholders.
The company could well return to paying dividends down the road. But until Qantas’ books are back in the black, that looks unlikely. So it appears as though income investors will have to wait a little longer to see their Qantas dividends return.
At the time of writing, the Qantas share price is up 0.97% today at $5.19. This ASX travel share has a market capitalisation of $9.7 billion.
The post Is Qantas an ASX dividend share? 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 no position in any of the stocks mentioned. 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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