Do Vulcan Energy shares pay dividends?

Vulcan Energy shares may be popular. But do they pay dividends like other ASX miners?

| More on:
A boy in a green shirt holds up his hands in front of a screen full of question marks.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Of all of the ASX lithium stocks on our share market, Vulcan Energy Resources Ltd (ASX: VUL) has certainly become one of the most popular. That tends to be what happens when a company goes from 20 cents a share (in 2020) to a high of $16.65 (September 2021), giving investors a return of over 8,000% in the process.

Today, Vulcan Energy shares have fallen away from the stupendous highs we saw last year. The company closed at $7.47 a share today.

But now that the company has stopped breaking new all-time highs, it might be a good time to ask some questions of this ASX lithium stock. So let's go with 'Do Vulcan Energy shares pay dividends?'.

Do Vulcan Energy shares pay out dividends?

Many ASX mining and resources companies on our share market pay dividends. Heck, some, like BHP Group Ltd (ASX: BHP) and Fortescue Metals Group Limited (ASX: FMG), are famous for it. But that reputation does not extend to ASX lithium stocks. As we covered earlier this week, there aren't too many ASX lithium stocks that even pay dividends. So is Vulcan Energy one of the lucky few?

Well, sadly no. Vulcan Energy shares do not currently pay a dividend. And nor have they ever.

What's more, a quick look at the company's books indicates that a dividend probably won't happen anytime soon either. Its recently released quarterly cash flow report covering the three months to 31 March 2022 shows that Vulcan Energy's net cash from operating activities was a loss of just over three million euros. For a company to be able to fund a dividend, it usually needs to be comfortably profitable and cash flow positive first.

So it looks as though income investors will have to wait at least a little longer to see a dividend come out of Vulcan Energy Resources shares.

Motley Fool contributor Sebastian Bowen 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.

More on Resources Shares

A smiling miner wearing a high vis vest and yellow hardhat does the thumbs up in front of an open pit copper mine.
Broker Notes

Why Macquarie expects this ASX All Ords copper stock to soar 48% in a year

Macquarie forecasts another big year of gains ahead for this ASX All Ords copper stock. But why?

Read more »

Female miner standing smiling in a mine.
Broker Notes

Why Macquarie predicts Pilbara Minerals shares could surge 71%

Macquarie forecasts a big rebound ahead for Pilbara Minerals shares. Let’s find out why.

Read more »

Two mining workers in orange high vis vests walk and talk at a mining site.
Resources Shares

ASX All Ords mining stock sinks on US silver acquisitions

Investors are bidding down the ASX All Ords miner on US acquisition news. But why?

Read more »

Image from either construction, mining or the oil industry of a friendly worker.
Resources Shares

How these 2 tailwinds could boost the BHP share price into 2026

A leading expert forecasts that BHP shares are set to recover. But why?

Read more »

a miner holds his thumb up as he holds a device in his other hand.
Resources Shares

3 reasons why the BHP share price could still be a buy

There are a few reasons why this mining giant could be appealing.

Read more »

Miner standing in front of trucks and smiling, symbolising a rising share price.
Resources Shares

The pros and cons of buying Fortescue shares in June

Let’s dig into whether it’s a good time to invest in this mining giant.

Read more »

Image from either construction, mining or the oil industry of a friendly worker.
Resources Shares

Why did the Mineral Resources share price rip 15% higher today?

The iron ore and lithium giant was the fastest riser of the ASX 200 on Thursday.

Read more »

A man wearing a hard hat and high visibility vest looks out over a vast plain where heavy mining equipment can be seen in the background.
Resources Shares

2030 forecast: As Australia's iron ore export earnings decline, copper will rise. What does this mean for BHP shares?

BHP is expanding its iron ore and copper production.

Read more »