This ASX 200 lithium share turned a $15,000 investment into $1.4 million

It’s likely no surprise that S&P/ASX 200 Index (ASX: XJO) materials share-turned-lithium favourite Mineral Resources Limited (ASX: MIN) has been on a good run lately.

The stock has surged 77% over the last 12 months and a whopping 320% over the last five years. As of Monday’s close, the Mineral Resources share price was $76.08.

But its recent gains have nothing on those the mining share has posted over its listed life.

Here’s what $15,000 invested in Mineral Resources shares at the time of the company’s ASX float would have returned by 2022.

The ASX 200 lithium share that turned $15,000 into $1.4m

Long before the establishment of Mineral Resources’ lithium leg – which could be spun out in the future – the mining giant listed on the ASX, offering new shares for just 90 cents under its initial public offering (IPO).

That’s right, a $15,000 investment in the company’s 2006 IPO would see a shareholder boasting a parcel of 16,666 shares in the ASX 200 lithium icon.

Today, that parcel would be worth a jaw-dropping $1.27 million – representing a mammoth 8,353% gain. And that’s before considering the company’s dividends.

Mineral Resources has been handing out a portion of its profits in the form of dividends since November 2006.

Back then, it handed shareholders just 1.2 cents per share. For comparison, the stock’s latest dividend was worth $1 per share.

Over the years, Mineral Resources has paid out a total of $9.562 per share of fully franked dividends.

That means an investor who held 16,666 Mineral Resources shares since 2006 would have received around $159,360.29 in dividends over that time.

And that’s before considering potential benefits brought by franking credits or compounding from participating in the company’s dividend reinvestment plan – active since 2011.

All in all, an initial $15,000 investment at the ASX 200 lithium share’s IPO would have returned a total of $1.43 million as of Monday’s close. That’s certainly nothing to scoff at!

The post This ASX 200 lithium share turned a $15,000 investment into $1.4 million appeared first on The Motley Fool Australia.

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• 3 ASX 200 lithium shares that turned a $10,000 investment into $500,000

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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