Of all the shares on the S&P/ASX 200 Index (ASX: XJO), it is perhaps Qantas Airways Ltd (ASX: QAN) that is causing the biggest stir on the markets this Thursday so far.
At the time of writing, the ASX 200 has inched 0.1% higher and is approaching 8,970 points. But Qantas shares are in another league entirely. The ASX 200 airline stock and national carrier closed at $11.11 a share yesterday afternoon. But this morning, those same shares opened at $11.66 before rising as high as $12.62 after market open. That was a gain worth 13.6% at the time, as well as a new all-time record for Qantas stock.
At the time of writing, Qantas shares have cooled off slightly, but are still going for $12.09 each, up a solid 8.8% for the day so far.
The catalyst for these extraordinary share price rises was the earnings report that Qantas delivered this morning.
As we covered at the time, these earnings were nothing short of impressive. Qantas revealed an 8.6% increase in revenues for FY2025 to $23.82 billion. Underlying profit before tax came in at $2.39 billion, up 15% from FY2024, while statutory profit after tax surged 28% to $1.61 billion.
But let's talk about the dividend avalanche that Qantas also announced today.
Qantas shares' triumphant dividend return
For starters, the airline revealed that its final dividend for 2025 would come in at 16.5 cents per share, with full franking credits attached. That matches the interim dividend of 16.5 cents per share that we saw paid out in April.
In addition, Qantas also revealed a special dividend of 9.9 cents per share, again matching the special dividend we saw in April as well. This payment will come with full franking credits, too.
Both of these payments will be doled out concurrently on 15 October. But investors who wish to bank this shareholder paycheque will need to own Qantas shares before they trade ex-dividend on 16 September next month.
The only option for this dividend is to receive it in cash, with Qantas' dividend reinvestment plan (DRP) not in operation for these payments.
These two new dividends mark a triumphant return to paying income for Qantas shares. Before 2025, the last time shareholders bagged a dividend from Qantas was back in 2019.
Based on the current Qantas share price of $12.09, the airline now has a dividend yield of 2.73%, or 4.37% if we include the value of the special dividends.
