Earlier today, BHP Group Ltd (ASX: BHP) released its full year results and declared another huge dividend. This is being underpinned by the record free cash flow the mining giant generated during the last 12 months.
In light of this, investors may be wondering if the free cash flow that Pilbara Minerals Ltd (ASX: PLS) is generating thanks to sky high lithium prices will be sufficient for it to pay a dividend along with BHP in FY 2022.
Will there be a Pilbara Minerals dividend in FY 2022?
Unfortunately, after scouring a range of broker notes, Iâve not found a single analyst tipping a Pilbara Minerals dividend in FY 2022.
Though, that doesnât necessarily mean that one isnât coming. Analysts are often wrong with their estimates. For example, the market was not expecting Telstra Corporation Ltd (ASX: TLS) to increase its dividend last week but it did. And guessing a maiden dividend is perhaps even harder.
So when will there be one?
According to a recent note out of Credit Suisse, its analysts are expecting the dividend payments to commence in FY 2023. And it certainly could be worth the wait if the broker is on the money with its forecasts.
The note reveals that Credit Suisse is forecasting a 29 cents per share dividend that financial year. Based on the current Pilbara Minerals share price of $3.17, this will mean a yield of 9.1% for investors.
In FY 2024, the broker is expecting the lithium minerâs dividend to ease a touch. Its analysts are forecasting a 21 cents per share dividend for that financial year. This will be a dividend yield of 6.6% for investors.
All in all, based on the above, Pilbara Minerals could soon be considered a dividend share. And a high yielding one at that!
The post Will Pilbara Minerals shares pay a dividend in 2022? appeared first on The Motley Fool Australia.
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More reading
- Why is the Liontown share price leaping 5% on Monday?
- Top brokers name 3 ASX shares to buy next week
- Up 30% in a month, can the Pilbara Minerals share price keep rising?
- Brokers name 3 ASX shares to buy today
- Up 52% since June, can the Pilbara Minerals share price extend gains?
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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