Will Qantas shares pay a dividend in 2024?

Prior to the pandemic, Qantas Airways Limited (ASX: QAN) was a regular dividend payer and generally offered investors an attractive yield.

This made the Flying Kangaroo a good option for investors that were looking for a source of income from their investments.

However, as you might have expected, the pandemic put an end to dividend payments, and they have remained suspended ever since.

That’s despite the company delivering a profit before tax of $2.47 billion in FY 2023 and then following that up with a FY 2024 first-half profit before tax of $1.25 billion in February.

But could a change be coming for the airline operator? Will Qantas shares offer a dividend later this year?

Let’s take a look and see what the market is expecting from Australia’s flag carrier airline.

Will Qantas shares pay a dividend in 2024?

Unfortunately, it appears unlikely that the company will resume dividend payments in 2024.

Though, it is not impossible that Qantas will share some of its profits with its shareholders.

At present, just one of the major brokers believes that a dividend will be paid this year. A recent note out of UBS shows that its analysts expect a 10 cents per share dividend in August.

This equates to a 1.8% dividend yield based on where Qantas shares currently trade.

The good news is that most brokers agree that there will be a dividend payment made in 2025.

And while the amount of the estimated dividend varies across analysts, they are forecasting a payout in the range of 15 cents per share to 34 cents per share. If this is accurate, it would mean a dividend yield of 2.7% to 6.2% for investors.

All in all, it could be worth holding onto Qantas shares if you’re an income investors.

The post Will Qantas shares pay a dividend in 2024? appeared first on The Motley Fool Australia.

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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.

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