When will Qantas shares pay a dividend again?

It's smiles all around as this couple take a selfie in their seats as their plane takes off and they travel overseas.

It's smiles all around as this couple take a selfie in their seats as their plane takes off and they travel overseas.

If you’re an owner of Qantas Airways Limited (ASX: QAN) shares, you might be wondering when you’ll be paid dividends again.

It has been three years since the airline operator last rewarded its shareholders with a share of its profits.

Back in FY 2019, the company paid shareholders a fully franked 25 cents per share dividend.

When will Qantas shares pay a dividend again?

For a company to pay dividends, it needs to be profitable. This is something that has eluded Qantas for the last couple of years because of COVID-19’s impact on the travel sector.

In FY 2020, Qantas recorded a loss of ~$1.95 billion and then in FY 2021 it reported another loss of ~$1.73 billion.

And while things are certainly looking up for Qantas, it is almost certainly going to be too soon for any talk of dividends in FY 2022.

A recent update reveals that the airline expects to deliver a strong EBITDA profit in the second half of FY 2022, but it won’t be enough to prevent a full year loss.

It explained:

While the Group still forecasts a significant full year Underlying EBIT loss for FY22 that includes the worst of the Delta and Omicron impacts as well as restart costs, the business remains on track for 2H22 Underlying EBITDA of between $450 million to $550 million.

Dividends incoming

The good news is that things are looking a lot more positive for FY 2023. Management believes the airline is “on track to return to Underlying profit in FY23.”

In light of this, the team at Citi see scope for a small dividend to be paid in FY 2023.

According to a recent note, the broker has pencilled in a 5 cents per share dividend. And while that won’t generate much income for investors, if they’re patient they might be rewarded.

Citi is forecasting a 20 cents per share dividend in FY 2024. Based on the current Qantas share price of $4.61, this would mean an attractive 4.3% dividend yield.

The post When will Qantas shares pay a dividend again? appeared first on The Motley Fool Australia.

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

Before you consider Qantas Airways Limited, 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 Airways Limited 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.

See The 5 Stocks
*Returns as of July 7 2022

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

Motley Fool contributor James Mickleboro 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 Scott Phillips.

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

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