When did Qantas last pay a dividend?

Kid with arm spread out on a luggage bag, riding a skateboard.Kid with arm spread out on a luggage bag, riding a skateboard.

Market watchers would be forgiven for not knowing Qantas Airways Limited (ASX: QAN) is a dividend share.

It’s been a long time since the iconic ‘flying kangaroo’ paid out a portion of its earnings to investors.

So, why has the S&P/ASX 200 Index (ASX: XJO) staple been holding out on its dividends? Let’s take a look.

As of Wednesday’s close, the Qantas share price is $5.45. It has gained 5.8% year to date.

Meanwhile, the ASX 200 has slipped 4.33%.

When was Qantas’ last dividend?

The last time those invested in Qantas shares received a dividend from the company was way back in financial year 2019.

That year saw them banking a 12-cent interim dividend and a 13-cent final dividend, both fully franked.

It’s worth noting that Qantas ended financial year 2019 in the red. It recorded a 6.5% year-on-year fall in statutory profit after tax.

Readers might be able to guess what happened next. The COVID-19 pandemic took hold in Australia in March 2020, to the detriment of the travel sector.

As borders slammed shut and demand nose-dived, Qantas deferred the payment of its 13.5-cent interim dividend, promised in February 2020. However, come June 2020, the dividend had been revoked entirely.

On cancelling the dividend, Qantas stated:

This uncertainty has now crystallised into a significant detrimental impact on the group’s earnings and cash position.

Further, the fully franked nature of the interim dividend was based on franking credits expected from taxable profits in the second half, which will now not materialise.

Accordingly, the board has decided to revoke the interim dividend, avoiding the outflow of $201 million of cash and helping to maintain strong liquidity in the face of this unprecedented crisis.

Qantas also cancelled a planned off-market buyback, underwent a $1.9 billion capital raise to boost its bottom line, and stood down the majority of its staff in 2020.

Sadly, Qantas’ COVID-19 challenges didn’t end there.

In fact, the airline recorded a $1.28 billion underlying loss before tax for the 6 months ended 31 December 2021, mainly due to the pandemic.

Perhaps unsurprisingly, there’s been no sign of a dividend from the company since the onset of COVID-19.

But with restrictions easing and demand for travel returning, the future might be brighter for Qantas, its shares, and its dividends.

The post When did Qantas last pay a dividend? appeared first on The Motley Fool Australia.

Should you invest $1,000 in Qantas right now?

Before you consider Qantas, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Qantas wasn’t one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of January 13th 2022

More reading

Motley Fool contributor Brooke Cooper 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.

from The Motley Fool Australia https://ift.tt/yZWfFPG

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s