Act fast if you want to receive the next Flight Centre dividend

It won't be long until this travel agent pays its next dividend.

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If you want to get hold of the next Flight Centre Travel Group Ltd (ASX: FLT) dividend, then you will need to get a wriggle on.

That's because the travel agent's shares are due to go ex-dividend next week.

When that happens, it means the rights to an upcoming dividend payment are settled and if you were to buy its shares, you wouldn't receive the pay out when payday comes around.

Two elderly men laugh together as they take a selfie with a mobile phone with a city scape in the background.

Image source: Getty Images

The Flight Centre dividend

As a reminder, last month the company released its half-year results and revealed a huge increase in its profits.

Total transaction value (TTV) increased by a solid 15% to $11.3 billion and underlying earnings before interest, tax, depreciation and amortisation (EBITDA) came in 99% higher at $189 million.

Things were even better for its underlying profit before tax, which jumped 565% over the prior corresponding period to $106 million.

This allowed the Flight Centre board to declare its first interim dividend since all the way back in 2019. A fully franked interim dividend of 10 cents per share was announced, much to the delight of its shareholders.

If you want to receive this this dividend on pay day, you will need to own Flight Centre shares before they trade ex-dividend on Tuesday 26 March.

Speaking of pay day, the travel agent is planning to make its payment next month on 17 April.

What's next for its dividend?

While this latest dividend may not be overly exciting for income investors, that could change in the future.

For example, Morgans is currently forecasting a fully franked dividend of 47 cents per share in FY 2025. This would mean a more attractive 2.2% dividend yield for investors.

It also sees plenty of upside for its shares with its add rating and $27.27 price target. This suggests that its shares could rise 28% over the next 12 months.

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 Flight Centre Travel Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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