ASX lithium stocks have exploded in popularity on the ASX over the last two years. Buoyed by hopes that lithium will become the hottest commodity of the 21st century, thanks to its heavy use in electric vehicles and rechargeable batteries, investors have been flooding into lithium shares.
Just take the Pilbara Minerals Ltd (ASX: PLS) share price. Pilbara Minerals is one of the largest and most popular lithium shares on the ASX. It was a 19-cent stock back in May 2020. But today, Pilbara commands a share price of $5 after going as high as $5.66 last year.
But ASX lithium shares are not known for their dividends. In fact, hardly any of them even pay dividends.
Pilbara Minerals? Nope (although there are rumours this might change in 2023). Core Lithium Ltd (ASX: CXO), Liontown Resources Ltd (ASX: LTR) or Sayona Mining Ltd (ASX: SYA)? Sorry.
But there is one notable exception: Mineral Resources Ltd (ASX: MIN):
About Mineral Resources
Last updated 15-11-2024, 04:00:00pm AEDTThe ASX's only dividend-paying lithium stock?
Unlike most of the companies listed above, Mineral Resources is not a pure-play lithium stock. It has a variety of operations, including iron ore mining and providing crushing and screening services to other miners. But the company has extensive lithium operations too.
It has a 50% stake in the Mt Marion lithium operation in Western Australia, as well as a 40% ownership of the Wodgina lithium operation and Kemerton lithium hydroxide plant, also in WA.
So Mineral Resources is an ASX dividend share. 2021 saw this company pay out two dividends worth a total of $2.75 per share, fully franked.
Last year, Mineral Resources skipped its interim dividend, but still paid investors a final dividend worth $1 per share. That gives the company a trailing dividend yield of 1.04% today.
That means buying 100 shares, at the present price of $96.40, would have netted an investor $100 in passive dividend income last year.
However, some ASX experts reckon Mineral Resources could turn up its dividend dial in 2023. As my Fool colleague James covered earlier this month, ASX broker Morgan Stanley is predicting that Mineral Resources will be able to fund a total of $6.75 in dividends per share in FY2023.
If that turns out to be the case, our 100 shares would yield total dividends of $675 in FY2023. This would give the company a forward yield of 7% right now. Of course, there is no guarantee that Mineral Resources will fund such a high level of dividends this year.
But if I were seeking a dividend-paying ASX lithium stock for 2023 and beyond, this would certainly be it.
