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.
