Flight Centre’s share price has been bid down massively following the COVID pandemic. Investors saw the share price plummet a massive 85.92%, and dividends cut. When will the Flight Centre Dividend return?
Flight Centre Dividend Summary
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Flight Centre Dividend Dates 2021
Flight Centre has cut its dividend since 2019. With no payments made in 2020 and 2021.
Flight Centre Dividend History Graph
FLT typically announces a dividend with the release of its half-year results in February and full-year results in August as seen in their financial calendar. FLT Dividends are typically paid twice a year, in April (interim dividend) and September/October (final dividend).
FLT has paid dividends since 1996. Including the 2008 GFC. We did see the companies earnings slashed and dividends halted as a result of the COVID recession. No dividends have been paid in 2020 and 2021. FLT has a history of paying fully-franked dividends. They do not currently offer a Dividend Reinvestment Plan (DRP).
Flight Centre Dividend Yield Comparison
FLT's current gross dividend yield is 0%, after its dividend was cut in response to the COVID recession. Below we have listed the yield of the big banks (CBA, WBC, NAB, ANZ), and the market average of 3.24%.
FLT has cut its dividend in response to the COVID recession
Net Flight Centre Dividend Yields Over Time
We can see FLT's net dividend yield averaged a rate of around 4-6%, prior to 2019. We can see that with the rise of COVID-19 and lockdowns the dividend yield spiked as the share price collapsed. Despite this rise in yield, this was never realized by investors as the dividend was cut in 2020.
Flight Centre Dividend Payout Ratio and Policy
A companies dividend payout ratio is the ratio of the total dividend sum paid out relative to the net income of the company. It is the percentage of earnings paid to shareholders in dividends.
COVID-19 has required FLT to implement a comprehensive package of initiatives during the period to preserve cash and strengthen its balance sheet to position it for future growth when travel rebounds. This included cutting the dividend in 2020 and 2021.
We can see that since 2006 FLT has maintained a dividend payout ratio below its earnings. This excludes 2019, where the group paid out a special dividend realizing a total payment exceeding the group's earnings.
Flight Centre Share Price
Flight Centre Dividend Policy
What is Flight Centres Dividend Policy: FLT aims to return to shareholders approximately 50 – 60% of net profit after income tax (NPAT).
With Flight Centre focussing on maintaining a strong balance sheet and keeping debt levels low, the group has ceased returning capital to shareholders through dividends during downturns caused by COVID-19. This will continue into the future until travel rebounds.
When Will my Flight Centre Dividends be Paid?
The Group typically announces a dividend with the release of its half-year results in February and full-year results in August. Dividends are typically paid twice a year, in April (interim dividend) and September (final dividend). Payment dates are listed on the financial calendar.
FLT Dividend Reinvestment Plan (DRIP)
Does FLT Offer a Dividend Reinvestment Plan? FLT does not currently offer a Dividend Reinvestment Plan (DRP).
A DRIP or dividend reinvestment plan allows investors to automatically reinvest their dividends for additional shares in the company. Using this method, the investor will still receive the franking credit and will still be taxed on the cash value of their dividend.
- In Computershare it’s as simple as going ‘my profile’- ‘Reinvestment plans’ and selecting the company and electing to participate in full or partially. That is either the entire amount or a partial amount of your dividend is reinvested.
- On Link you simply click view details of the company of interest and update it in the ‘payments and tax’ section.
For more information check out our ASX DRIP VS NON-DRIP Guide.
Should I Buy FLT Shares?
Flight Centre has been able to maintain a strong balance sheet which has allowed them to function despite the losses and will allow them to continue to do so for the short term. Despite such a challenging environment they have responded well cutting costs and maintaining cash. Although domestic travel is returning international travel still seems off the table for the foreseeable future.
Full Analysis here: Should I Buy Flight Centre Shares?