EasyJet Dividend: Dates, Forecasts, and Analysis

In early 2024, easyJet (LSE:EZJ) restored its regular dividend for the first time in four years. As such, shareholders are now once again earning a passive income from holding easyJet shares in their portfolio. Here are all the details.

When does easyJet pay dividends?

Typically, companies tend to pay shareholder dividends once per quarter. However, the exact timing of these payments is entirely down to the management team’s discretion. And in the case of easyJet, dividends are paid once per year in February.

While the exact date tends to change every year, the easyJet dividend has typically been paid between 21 February and 28 February since 2012.

What is the dividend payout ratio for easyJet?

Following its latest results in November 2024, easyJet has announced dividends for its 2024 fiscal year (ending in September) will be 12.1p per share.

The firm’s headline earnings per share for the same period landed at 61.3p. Therefore, the easyJet payout ratio is currently 19.7%. Generally speaking, a payout ratio below 65% is considered ‘safe’ as it provides greater flexibility for management to maintain dividend payments during unfavourable business periods.

Compared to a share price of around 560p, that puts the easyJet dividend yield at approximately 2.2%. However, as the yield is affected by the share price, it will change continuously.

easyJet dividend history

easyJet first started paying a dividend in 2012 as part of its 2011 fiscal year. The table below outlines all dividend payments made since this date.

What is the easyJet dividend forecast for 2025?

Based on current analyst consensus, the easyJet dividend is expected to climb in the 2025 fiscal year with an average consensus of 14.837p per share. However, it’s important to remember that forecasts must be taken with a healthy pinch of salt. These projections are built on a series of assumptions that don’t always come true. Therefore, there is no guarantee that dividends will rise in 2025 and may instead fall.

Is easyJet having financial problems?

Running an airline business isn’t easy. It comes paired with a lot of fixed costs and operating expenses that can decimate profit margins when the travel market turns sour.

This was seen firsthand by shareholders during the 2020 pandemic when global travel restrictions caused a 60% crash in the easyJet share price. And despite conditions improving significantly over the last few years, the stock is still trading firmly below its pre-pandemic prices.

However, in terms of financial strength, there is room for optimism. Management has been using aircraft sale-leaseback agreements to raise cash and improve liquidity quickly. These contracts allow an airliner to sell an aircraft to a third party under the condition that the airline continues to lease for a fixed number of years. As such, operations remain undisrupted, and easyJet gets a large cash injection.

This strategy isn’t perfect. It causes the group’s lease liabilities to increase. However, with more cash in the bank, the firm’s net debt position has improved drastically and is now back in positive territory. That means easyJet currently has more cash than debt, resulting in a healthier balance sheet.

As of September 2024, easyJet has a net cash position of £181m. And with 54% of its aircraft fleet still owned, the firm has the financial flexibility to continue executing aircraft sale-leaseback contracts should it need to raise capital urgently.

Which airline pays the highest dividend?

There are other airline businesses across the London Stock Exchange that offer dividends. However, as of November 2024, easyJet currently offers the largest dividend yield.