$10,000 invested in Qantas shares 5 years ago is now worth…

Investors would have done well to heed Warren Buffett's advice and bought Qantas shares five years ago.

| More on:
A woman ponders a question as she puts money into a piggy bank with a model plane and suitcase nearby.

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

It would have taken some steely nerves to invest $10,000 in Qantas Airways Ltd (ASX: QAN) shares five years ago.

But investors who were able to see through the medium-term pain the S&P/ASX 200 Index (ASX: XJO) airline stock was facing amid the pandemic-driven global and domestic border closures at that time will have been amply rewarded by today.

And that's despite Qantas shares having lost 17.35% since hitting all-time highs of $10.20 on 4 March this year.

When quality ASX 200 stocks take a beating for reasons largely outside of their control, as we saw with COVID-19 and have been witnessing these past few weeks amid the Trump tariff drama, it's worth recalling some top investment advice from Warren Buffett.

Namely, "Be greedy when others are fearful."

So, if you channelled your inner Buffett and bought $10,000 of Qantas shares five years ago, just how much would you have today?

Let's find out!

How have Qantas shares fared over five years?

On 3 April 2020, the ASX 200 was in its early rebound stages after hitting rock bottom on 27 March.

On 3 April 2020, you could have picked up Qantas shares for $3.05 apiece.

Meaning your $10,000 investment would have gotten you 3,278 shares (excluding any potential brokerage fees).

On Friday, Qantas closed the day trading for $8.43 a share. That equates to a gain of 176.4%.

And it would have seen your $10,000 investment from five years ago turn into $27,633.54 today.

But that's not all!

Don't forget the Qantas dividend

Amid the pandemic chaos, Qantas suspended its dividend payouts in 2020. And for the next few years, the company worked on returning to profitability before launching some sizeable share buybacks in 2022.

But with H1 FY 2025 profits surging, Qantas reinstated its interim dividend when the airline reported its half-year results on 27 February. Qantas shares closed up 5.6% on the day.

For the six-month period, the company reported a 9% year-on-year increase in revenue to $12.13 billion. The airline's net profit was up 6% to $923 million.

As for that passive income, the combined ordinary and special dividend work out to (a rounded) 26 cents per Qantas share, fully franked.

So, if we add that back into Friday's closing price of $8.43 a share, then the accumulated value of the 3,278 Qantas shares you bought for $3.05 apiece five years ago would now be worth $8.69 each.

And this would have turned your $10,000 investment into $28,485.82 today.

Motley Fool contributor Bernd Struben 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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Travel Shares

A happy family of four on holidays stand on a jetty and cheer.
Travel Shares

Travel to the US is down this year. Will Australia's tourism sector benefit?

2025 could prove to be a good year for Australian hotel operators.

Read more »

Couple at an airport waiting for their flight.
Travel Shares

What are Macquarie's top 3 ASX stock picks in the travel sector?

If you are looking for exposure to the travel sector, then it could be worth listening to what Macquarie Group…

Read more »

Happy woman trying to close suitcase.
Travel Shares

Should I buy Web Travel Group, Corporate Travel Management or Flight Centre shares?

Do analysts think these shares are buys? Let's find out.

Read more »

Paper aeroplane going down on a chart, symbolising a falling share price.
Travel Shares

Flight Centre shares haven't traded this low since the pandemic, what's going on?

The Flight Centre share price has suffered over the years. It continues to hit turbulence

Read more »

a gloved hand with a fur lined jacket attached holds a small toy aeroplane against a frozen white, icy backdrop.
Travel Shares

A changing of the guard at Corporate Travel Management

Corporate Travel Management will have a new CEO in June.

Read more »

Woman on a tablet waiting in for her flight in an airport and looking through a window.
Travel Shares

Down 32% in a year, can Flight Centre shares rebound in 2025?

A leading expert runs his slide rule over the Flight Centre share price.

Read more »

A woman ponders a question as she puts money into a piggy bank with a model plane and suitcase nearby.
Travel Shares

Will Qantas shares fly back above $10 in 2025?

Will Qantas shares take off back to new all-time highs in 2025?

Read more »

Couple at an airport waiting for their flight.
Travel Shares

Why is Flight Centre down 20% in under a month?

Investors have been hitting the sell button this month. Let's find out why.

Read more »