Snapped up $8,000 of Qantas shares in 2018? Here’s how much passive income you’ve received

The Qantas Airways Limited (ASX: QAN) share price has put on a rollercoaster performance over the last five years. Meanwhile, the airline operator battled through the onset of, and its recovery from, the COVID-19 pandemic.

If one were to have invested $8,000 in Qantas in early April 2018, they likely would have walked away with 1,322 shares, paying $6.05 apiece.

Today, that parcel would be worth $8,976.38. The Qantas share price has gained 12% over the last five years to trade at $6.79 as of Tuesday’s close.

For comparison, the S&P/ASX 200 Index (ASX: XJO) has risen 25% in that time.

But what about the dividends on offer from the ASX 200 travel giant? Let’s factor them into the stock’s returns.

All dividends paid to those holding Qantas shares since 2018

Find all the dividends that have been paid to those holding Qantas shares over the last five years below:

As the above chart shows, each Qantas share has yielded just 42 cents in dividends since this time five years ago.

That means our figurative investment has likely brought in $555.24 of passive income over its life – bringing its total return on investment (ROI) to 19%.

Though, that’s before considering the tax benefits that may have been born from accompanying franking credits.

The airline hasn’t declared a dividend since the pandemic threw the travel industry into turmoil in early 2020.

While Qantas has since returned to profit, it hasn’t yet posted a dividend. But investors haven’t been left high and dry.

The ASX 200 giant has been returning capital to shareholders via on-market share buybacks.

It completed a $400 million buyback in December and announced another $500 million buyback in February.

The post Snapped up $8,000 of Qantas shares in 2018? Here’s how much passive income you’ve received appeared first on The Motley Fool Australia.

(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(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Why did the Qantas share price soar higher than the ASX 200 in March?
• Qantas shares in the green amid sweet $2m investment
• Why I think the Qantas share price can keep soaring higher
• Beach and bling: 2 ASX 200 shares Firetrail is loving right now
• Refuelled with profits, how ASX 200 favourite Qantas plans to stick the landing on growth

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 Scott Phillips.

from The Motley Fool Australia https://ift.tt/ciKnj7x