Here is the Pilbara Minerals dividend forecast through to 2025

It may not be long until the inaugural Pilbara Minerals Ltd (ASX: PLS) dividend is paid to shareholders.

That’s because earlier this week, the lithium miner unveiled its capital management framework.

According to the framework, with Pilbara Minerals generating significant free cash flow from its operations, it is planning to pay out 20% to 30% of its free cash flow to shareholders from FY 2023.

Management notes that this leaves it with enough free cash flow to maintain safe and reliable operations, as well as support growth and productivity initiatives.

The Pilbara Minerals dividend forecast

In light of the announcement of the company’s capital management framework, investors may now be wondering what to expect from the Pilbara Minerals dividend in the coming years.

The good news for shareholders, is that the team at Macquarie is expecting some very attractive dividend payments from the company.

According to a note from this week, in FY 2023, the broker is forecasting a dividend of 34 cents per share. Based on the current Pilbara Minerals share price, this will mean a 7.2% dividend yield for investors.

Macquarie is expecting its dividend to remain at 34 cents per share in FY 2024, providing investors with another 7.2% yield.

Whereas in FY 2025, its analysts have forecast an 8.8% increase in its dividend to 37 cents per share. This will mean a 7.8% dividend yield for investors that year based on its current share price.

Should you invest?

As well as forecasting generous dividend yields, Macquarie sees plenty of upside for the Pilbara Minerals share price.

Its analysts currently have an outperform rating and $7.70 price target on the company’s shares. This implies potential upside of 63% for investors over the next 12 months.

The post Here is the Pilbara Minerals dividend forecast through to 2025 appeared first on The Motley Fool Australia.

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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 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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