Flight Centre Travel Group Ltd (ASX: FLT) shares have been very strong performers in 2023.
Since the start of the year, the travel agent giant's shares have risen over 30%.
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Why is the Flight Centre share price smashing the market?
Investors have been scrambling to buy the company's shares this year after its financial performance improved materially.
For example, for the first half of FY 2023, Flight Centre revealed the more than tripling of its revenue to $1 billion. This was driven by a significant rebound in the travel market and a particularly strong performance from its corporate business.
Also getting investors excited was its operating profit. It posted underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) of $95 million for the six months, which was a huge improvement from a $184 million loss a year earlier.
And while it still recorded a modest underlying profit after tax loss of $2.45 million, this was notably better than its $188 million after tax loss in the prior corresponding period.
However, as great an improvement as it was, it wasn't going to put the Flight Centre board in a position to pay an interim dividend. So, when might the company start paying a dividend again?
When will the Flight Centre dividend return?
I have good news and bad news. The good news is that analysts believe the Flight Centre dividend will return. The bad news is that you may have to be patient.
According to a recent note out of Goldman Sachs, its analysts are forecasting zero dividends in FY 2023 and FY 2024, before it returns with an 18 cents per share dividend in FY 2025. However, based on the current Flight Centre share price of $19.04, this will mean a rather modest ~1% yield.
Over at Citi, its analysts are a little more upbeat. They expect no dividends in FY 2023, but a 36 cents per share dividend in FY 2024 and then an 81 cents per share dividend in FY 2025. This represents yields of 1.9% and 4.25%, respectively.
Finally, Morgans agrees that no dividends will be paid this year but expects dividends per share of 47 cents in FY 2024 and then 74 cents in FY 2025. This will mean yields of 2.5% and 3.9%, respectively.
All in all, it could be worth being patient with Flight Centre shares if you're an income investor.
