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.
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Will there be a Pilbara Minerals dividend in FY 2022?
Unfortunately, after scouring a range of broker notes, I've not found a single analyst tipping a Pilbara Minerals dividend in FY 2022.
Though, that doesn't necessarily mean that one isn't 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 miner's 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!
