When did Webjet (ASX:WEB) last pay a dividend and when might the next one be?

Is there a Webjet dividend coming soon?

| More on:
A woman looks nervous and uncertain holding a hand to her chin while looking at a paper cut out of a plane that she's holding in her other hand. representing the falling Air New Zealand share price today

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

One of the most negatively impacted shares on the Australian share market during the pandemic has been Webjet Limited (ASX: WEB).

Prior to the pandemic, the online travel agent was growing at a rapid rate and rewarding its shareholders with seemingly ever-increasing dividend payments.

But all that changed in 2020 when the travel market was turned upside-down by COVID-19.

What’s happened to the Webjet dividend?

After well over a decade of consistently paying dividends, these payments came to an abrupt end during the first half of FY 2020 when the true impacts of the pandemic were felt in the travel sector.

Although Webjet declared a 9 cents per share interim dividend with its half year results, it didn’t actually make the payment as planned. Instead, the Webjet board deferred the payment initially by almost a year until April 2021, then again until July 2022, before eventually deciding to finally pay it last month.

At the time, Webjet’s Chairman, Roger Sharp, explained why the company was deferring its payment.

He said: “At Webjet we believe there will be a significant opportunity when the COVID-19 pandemic subsides […] Never has “cash is king” been a more appropriate epithet for the times we live in. Webjet deliberately recapitalised early to build a war chest so it can operate productively through the downturn. We have deferred payment of the FY20 interim dividend until 16 April 2021 and, given the ongoing market uncertainty, are not declaring a final dividend for FY20.”

When will a dividend be paid again?

Despite Webjet finally paying the long-deferred dividend in December, the market doesn’t appear optimistic that this signals the restart of regular dividend payments just yet.

For example, both Citi and Goldman Sachs are expecting there to be no dividend payments in FY 2022 but have wildly different views thereafter.

Goldman sees scope for a dividend in FY 2023 and has pencilled in a payout of 9 cents per share. Its analysts then expect this to increase to 14 cents per share in FY 2024. Whereas Citi is not forecasting a dividend in FY 2023 but has tipped a modest 3 cents per share dividend in FY 2024.

As for recommendations, Goldman has a buy rating and $6.90 price target and Citi has a high risk neutral rating and $6.46 price target.

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 recommended Webjet Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Dividend Investing

a woman with a huge happy smile on her face eyes a jar of coins next to her on a table.
Dividend Investing

Experts name 2 ASX dividend shares to buy next week

These dividend shares have been named as buys...

Read more »

two young boys dressed in business suits and wearing spectacles look at each other in rapture with wide open mouths and holding large fans of banknotes with other banknotes, coins and a piggybank on the table in front of them and a bag of cash at the side.
Dividend Investing

These 2 ASX 200 shares are going ex-dividend next week

We take a look at the two ASX 200 shares trading without rights next week.

Read more »

A happy construction worker leap-frogs over another as a third looks on
Dividend Investing

Locked in the CSR dividend? Here’s the payment info

Own CSR shares? It's time to check your bank account.

Read more »

A woman puts money in her piggy bank all rugged up for the winter cold.
Dividend Investing

ANZ rewards shareholders with its latest dividend. Here are the details

Payday has come for those who are eligible for the bank's dividend.

Read more »

Dividend Investing

2 excellent ASX dividend shares that analysts rate as buys in July

Here are two dividend shares rated as buys...

Read more »

Two women shoppers smile as they look at a pair of earrings in a costume jewellery store with a selection of large, colourful necklaces made of beads lined up on a display shelf next to them.
Dividend Investing

Here’s why I think Lovisa could be a top ASX dividend share

This retail ASX share could provide good dividend income for investors.

Read more »

Gold bars and Australian dollar notes.
Resources Shares

Do Evolution Mining shares pay a dividend?

The ASX 200 mining shares are known as good dividend payers -- is Evolution among them?

Read more »

a pile of colourful trainer shoes and sandshoes fashioned to look like a large shoe.
Retail Shares

What is the current dividend yield for Accent shares?

What kinds of dividends is Accent Group paying these days?

Read more »