In the past, Qantas Airways Limited (ASX: QAN) shares were a popular option for passive income investors.
Unfortunately, that hasn't been the case in recent years, with the airline operator suspending its dividend since the pandemic.
But with the company now generating bumper profits, could Qantas become a top option for passive income soon?
Let's see what is on the cards for 2024 and beyond.
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Should you buy Qantas shares for passive income?
I have good news and bad news for you.
The bad news is that most brokers believe that FY 2024 may be a year too soon for a return to dividend payments.
While there is a broker predicting a small final dividend in August, that's not going to move the needle much with a $10,000 investment.
But hang in there, because the Flying Kangaroo could reward shareholders handsomely in FY 2025.
Investing $10,000
Firstly, if you were to invest $10,000 in Qantas shares, you would end up owning 1,934 units.
What sort of passive income could these shares generate?
Well, according to a note out of Goldman Sachs, it believes that the company will pay a 30 cents per share dividend next year.
Based on its current share price of $5.17, this will mean a very attractive 5.8% dividend yield for investors.
It will also mean that your 1,934 Qantas shares generate approximately $580 of passive income.
And with Goldman expecting another 30 cents per share dividend in FY 2026, you can expect to receive the same amount of income that year.
But it gets better.
With Goldman putting a buy rating and $8.05 price target on its shares, your 1,934 units would have a market value of $15,568.70 if they rose to that level.
That's a return of $5,568.70, which may just make up for the lack of dividends this year.
