If you want to know if owning an Air France KLM share will allow you to receive a dividend, unfortunately the answer is no. Indeed, the last dividend that was paid by this company was in 2017. Since that time, Air France KLM has stopped paying a dividend to its shareholders because of these poor results. In this article, we will explain why Air France, KLM does not pay dividends to its shareholders and if it is possible to consider such a payment in the future.
As we mentioned in the introduction, Air France KLM shares do not pay a dividend. Indeed, and if in the past, this company did pay a dividend to its shareholders, this has not been the case for a few years now.
However, it is still possible to buy Air France KLM shares, either in the hope that the company will start paying a dividend again in the future or simply with a view to growth and capital gains.
The main reason why Air France KLM has not paid its shareholders since 2017, concerns its financial results. Indeed, if the coronavirus crisis has of course affected the activities of Air France KLM, as it was the case for other activities in this sector, its financial problems date from before this period.
Indeed, we note that since 2017, Air France KLM has not paid dividends to its shareholders. The budgetary and financial situation of the group has indeed deteriorated since 2016, which led to the suspension of dividends in order to conserve free cash flow in order to improve its growth.
The company has therefore decided to stop paying its shareholders and to try to improve its situation by reducing its debt level and making strategic investments. Of course, in the long term, Air-France can become a profitable company again and pay its shareholders a dividend.
It is not possible at this time to know whether Air France KLM will pay a dividend to its shareholders in the coming years. from the information we currently have, what we do know is that Air France KLM will not pay a dividend in 2022 for the fiscal year 2021. Nor has the group communicated on the possible payment of a dividend in 2023 for the fiscal year 2022.
So, if you buy this stock today, don't expect to receive a return next year or even probably the year after.
However, given that Air France KLM has paid dividends to its shareholders in the past, it is possible that the company will change its distribution policy in the coming years and decide to resume this payment. This decision will largely come from the improvement of the group's financial results with an increase in net profits allowing this distribution. To find out if Air France KLM will pay a dividend in the future, you can analyze its financial results as well as the different strategies and development plans put in place in order to turn around its situation and profitability and return to a real profit.
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