The Qantas Airways Ltd (ASX: QAN) share price has been one of the stronger ASX travel stocks in 2025.
After several difficult years following COVID, the airline has rebuilt profits, repaired its balance sheet, and restarted dividends. The result is a share price that is up almost 15% in 2025, with Qantas shares now trading around $10.30.
With a yield sitting near 5%, is Qantas worth buying for dividends heading into 2026?
Let's take a closer look.
How much is Qantas paying in dividends?
Qantas made a big move in FY25 by finally restarting its dividends.
For the year, the company paid:
- Interim base dividend: 16.5 cents per share
- Interim special dividend: 9.9 cents per share
- Final base dividend: 16.5 cents per share
- Final special dividend: 9.9 cents per share
That adds up to 52.8 cents per share, with all dividends fully franked.
At a share price around $10.30, that works out to a dividend yield of just over 5%, which is attractive compared with many other large ASX shares.
It is also worth noting that Qantas did not pay dividends for several years after COVID. The return to regular payments shows the business is now in a much stronger position.
What are brokers saying?
Broker views on Qantas are mostly positive.
The general analyst consensus rating is buy, with average price targets sitting around $12.30. That suggests brokers see further upside on top of the dividend income.
Some brokers have trimmed targets in recent months as travel demand normalises, but few have turned negative.
The view across the market is that Qantas is now a profitable, cash-generating business again.
What is happening in the business?
In its recent market update and AGM address, Qantas said travel demand remains solid across both domestic and international routes.
The company highlighted:
- Strong performance from the Qantas Loyalty division
- Healthy demand for leisure travel
- Stable capacity management to protect margins
Management also acknowledged challenges, including higher costs and softer corporate travel demand, but overall earnings remain well above pre-COVID levels.
Should you buy Qantas shares for income?
Qantas shares look appealing for investors seeking income plus steady growth.
The dividend yield is attractive, dividends are fully franked, and the business is in much better shape than it was a few years ago.
That said, airline stocks can be volatile. Changes in fuel costs, economic conditions, or travel demand could impact future earnings and dividends.
For investors comfortable taking on some risk, Qantas could have a place in a diversified income portfolio.
