Insights

Will Webjet pay a dividend in 2022?

When will Webjet pay a dividend again?
The post Will Webjet pay a dividend in 2022? appeared first on The Motley Fool Australia. –

For much of the last decade, Webjet Ltd (ASX: WEB) shares were a decent option for income investors.

The online travel agent regularly shared in the region of 50% to 60% of its profits with shareholders.

That was of course until COVID-19 reared its ugly head. Since then, Webjet has been bleeding cash and unsurprisingly suspended its dividend payments.

But with trading conditions in the travel sector improving greatly in 2022, investors may now be wondering when dividends will return.

When will Webjet start paying a dividend?

According to a recent note out of Goldman Sachs, its analysts believe that Webjet could soon be in a position to start paying dividends again.

However, don’t get your hopes up for a dividend from Webjet in FY 2022. Goldman expects the company to report another sizeable loss this year before returning to profit in FY 2023.

At which point the broker expects Webjet to pay shareholders a 9 cents per share fully franked dividend. Based on the current Webjet share price of $5.59, this will mean a modest yield of 1.6%.

But it gets better. With the broker forecasting another jump in profits in FY 2024, it expects the company’s dividend to increase to a fully franked 14 cents per share. This equates to a more attractive 2.5% yield.

What is driving its return to profit growth?

Webjet’s return to growth is expected to be underpinned by the travel market recovery, a stronger and more profitable business model, and its growth engine – the WebBeds (bedbanks) business.

Goldman commented: “We expect WEB to benefit from the tailwind of travel recovery, offering structurally improved profitability and a strong outlook on the Bedbanks business, which we expect to resume the strong growth journey that it embarked on prior to COVID.”

The post Will Webjet pay a dividend in 2022? appeared first on The Motley Fool Australia.

Should you invest $1,000 in Webjet right now?

Before you consider Webjet, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Webjet wasn’t one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of January 13th 2022

More reading

Are ASX 200 travel shares already fully valued in May?
These are the 10 most shorted ASX shares
2 top ASX growth shares Goldman Sachs rates as buys
Is the Webjet share price now a buy amid ‘strong’ travel demand?
Why did the Webjet share price have such a good run in April?

Motley Fool contributor James Mickleboro 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 recommended Webjet Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

  • This field is for validation purposes and should be left unchanged.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US & HK* Trades. Click Here!