Can Pilbara Minerals shares really deliver an 8% dividend yield in 2023?

For a number of years, Pilbara Minerals Ltd (ASX: PLS) shares have been the domain of growth investors.

However, with the lithium miner announcing the establishment of a capital management framework late last year, the company is now catching the eye of income investors.

And that’s for good reason based on what analysts are expecting from Pilbara Minerals shares in 2023.

Pilbara Minerals shares tipped to provide an attractive dividend yield

With Pilbara Minerals still commanding very high prices for its lithium, at least for now, the market is expecting the company to deliver bumping earnings and free cash flow in FY 2023.

This has many analysts expecting the lithium giant to reward its shareholders with a very big maiden dividend later this year.

For example, according to current consensus estimates, the market is forecasting a 17 cents per share dividend for FY 2023.

Based on the current Pilbara Minerals share price of $4.04, this will mean an attractive 4.2% yield for investors.

Even bigger dividend yield expected by Macquarie

According to a recent note out of Macquarie, its analysts believe that the lithium miner’s earnings will be strong enough to pay a dividend almost double consensus estimates.

The ultra-bullish broker is forecasting a fully franked 34 cents per share dividend in FY 2023.

Based on where Pilbara Minerals shares are trading, this will mean a whopping 8.4% dividend yield for investors.

Another positive is that Macquarie believes that the company’s shares can rise materially from current levels.

Its analysts have an outperform rating and $7.50 price target on them. This implies potential upside of over 85% for investors over the next 12 months.

Combined with its forecast dividend yield, this lithium miner has the potential to provide investors with a total return of 94%.

The post Can Pilbara Minerals shares really deliver an 8% dividend yield in 2023? appeared first on The Motley Fool Australia.

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More reading

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• Why are ASX 200 lithium shares struggling on Monday?
• Which ASX lithium shares are forecasting to pay dividends in 2023?
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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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