Qantas Airways Limited (ASX:QAN) Appears to Be a Promising Stock, with Its Ex-Dividend Date Approaching Soon

March 06, 2025 09:30 PM AEDT | By Team Kalkine Media

Qantas Airways Limited (ASX:QAN) Appears to Be a Promising Stock, with Its Ex-Dividend Date Approaching Soon — Image source: Shutterstock

Sustainability of Dividends

While dividend payouts are appealing, their sustainability is key. Qantas Airways has maintained a conservative payout approach, distributing just 20% of its profits last year. This approach provides a buffer for unforeseen financial challenges and indicates a commitment to maintaining its dividend.

When analyzing dividend stocks, it's crucial to assess if both earnings and dividends are growing. Qantas Airways has shown impressive growth with earnings per share rising by 11% per annum over the last five years. Such growth is promising as it suggests potential for future dividend increases.

Historic Dividend Growth

Over the past nine years, Qantas Airways has averaged a dividend growth rate of 19% per year. Coupled with the rapid growth in both earnings and dividends, this makes for an encouraging prospect for dividend-focused investors.

Qantas Airways demonstrates attractive characteristics as a dividend stock. Its approach of reinvesting substantial profits back into the business suggests a strategic focus on long-term growth. While the current dividend is promising, potential investors should also be mindful of inherent investment risks.

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