Snapped up $8,000 of Qantas shares in 2018? Here's how much passive income you've received

The airline has only paid out four dividends over the last five years.

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Key points

  • The Qantas share price has gained 12% over the last five years to trade at $6.79 as of Tuesday's close
  • Meanwhile, the airline operator has paid out just a handful of dividends
  • Indeed, each Qantas share has yielded just 42 cents of passive income since April 2018

The Qantas Airways Limited (ASX: QAN) share price has put on a rollercoaster performance over the last five years. Meanwhile, the airline operator battled through the onset of, and its recovery from, the COVID-19 pandemic.

If one were to have invested $8,000 in Qantas in early April 2018, they likely would have walked away with 1,322 shares, paying $6.05 apiece.

Today, that parcel would be worth $8,976.38. The Qantas share price has gained 12% over the last five years to trade at $6.79 as of Tuesday's close.

Created with Highcharts 11.4.3Qantas Airways PriceZoom1M3M6MYTD1Y5Y10YALL2 Apr 20184 Apr 2023Zoom ▾Jul '18Jan '19Jul '19Jan '20Jul '20Jan '21Jul '21Jan '22Jul '22Jan '232019201920202020202120212022202220232023www.fool.com.au

For comparison, the S&P/ASX 200 Index (ASX: XJO) has risen 25% in that time.

But what about the dividends on offer from the ASX 200 travel giant? Let's factor them into the stock's returns.

All dividends paid to those holding Qantas shares since 2018

Find all the dividends that have been paid to those holding Qantas shares over the last five years below:

Qantas dividends' pay dateTypeDividend amount
September 2019Final13 cents
March 2019Interim12 cents
October 2018Final10 cents
April 2018Interim7 cents
Total: 42 cents

As the above chart shows, each Qantas share has yielded just 42 cents in dividends since this time five years ago.

That means our figurative investment has likely brought in $555.24 of passive income over its life – bringing its total return on investment (ROI) to 19%.

Though, that's before considering the tax benefits that may have been born from accompanying franking credits.

The airline hasn't declared a dividend since the pandemic threw the travel industry into turmoil in early 2020.

While Qantas has since returned to profit, it hasn't yet posted a dividend. But investors haven't been left high and dry.

The ASX 200 giant has been returning capital to shareholders via on-market share buybacks.

It completed a $400 million buyback in December and announced another $500 million buyback in February.

Motley Fool contributor Brooke Cooper 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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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