How many Mineral Resources shares do I need to buy for $500 per month of passive income?

Mineral Resources Ltd (ASX: MIN) shares are back on the radar for passive-income investors.

The lithium miner declared a surprise return of shareholder dividends as part of its FY26 earnings announcement last month. The company last paid shareholders an interim payment back in March 2024.

Mineral Resources posted its strongest financial results in its 20-year history in August. The company said the improvement was driven by Mining Services growth, the ramp-up of its Onslow Iron, and improved lithium performance and prices.

The miner’s annual performance saw its finances return to profit after a difficult FY25, helped by stronger operating performance across the business in FY26. Mineral Resources revenue jumped 44% and underlying EBITDA surged 183%. Meanwhile, underlying NPAT came in at $822 million, versus a $112 million loss a year earlier.

The news puts the miner’s shares firmly back in the spotlight.

But what exactly would it take to earn the passive income you want from Mineral Resources shares?

Let’s investigate, using a $500 monthly passive income as an example.

What passive income does Mineral Resources pay its shareholders?

Mineral Resources has declared a fully-franked final dividend of 83 cents per share for FY26. This represents a 20% payout of underlying NPAT and was much higher than the market expected.

At the Mineral Resources share price of $64.20 at the time of writing, the dividend translates to a yield of around 1.3% before franking credits.

Mineral Resources shares are scheduled to trade ex-dividend on 8 September, with the record date falling on 9 September.

The company will then pay the dividend on 30 September.

So, how many Mineral Resources shares do I need to own to generate $500 per month of passive income?

Using the FY26 total dividend payment of 83 cents per share, investors would need to own around 7,229 Mineral Resources shares in order to earn $500 per month (equivalent to $6,000 per year) in passive income.

What would that cost me?

Using the $64.20 share price at the time of writing, investors would need to invest roughly $464,101 into Mineral Resources shares in order to earn $500 per month in passive income in FY26.

It’s not a small amount, but it could be worth it in the long run.

And remember, you don’t need to invest the entire amount in one go. Start off small and let compound growth do some of the work for you.

Could the Mineral Resources dividend payout keep climbing higher in FY27 and beyond?

Mineral Resources said the reinstated dividend reflects the company’s confidence that its balance sheet is healthy and that it is generating cash to sustain returns through the cycle.

Management expects volumes to continue growing across its mining services business, as well as iron ore, lithium, and other commodities in FY27.

If that growth comes to fruition and the company’s debt continues to fall, management could be in a strong position to reward shareholders with higher dividends going forward.

The post How many Mineral Resources shares do I need to buy for $500 per month of passive income? appeared first on The Motley Fool Australia.

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Motley Fool contributor Samantha Menzies 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.