Invested $3,000 in Mineral Resources shares in 2018? Here's how much dividend income you've received

A $3,000 investment five years ago likely would have seen one boasting 169 shares in the mining giant.

| More on:
A happy construction worker or miner holds a fistful of Australian dollar notes.

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

Key points

  • The Mineral Resources share price has soared over the last five years, gaining a whopping 345% in that time 
  • Meanwhile, the mining giant has been paying dividends to those invested in its stock
  • Each Mineral Resources share has yielded $6.79 of passive income since April 2018

The Mineral Resources Ltd (ASX: MIN) share price has spoilt investors over the last five years, gaining at nearly 15 times the rate of the S&P/ASX 200 Index (ASX: XJO).

In fact, a $3,000 investment five years ago likely would have seen one boasting 169 shares in the mining giant, paying $17.69 apiece.

Today, that parcel would be worth a whopping $13,300.30. The Mineral Resources share price last traded at $78.70.

Created with Highcharts 11.4.3Mineral Resources PriceZoom1M3M6MYTD1Y5Y10YALL23 Apr 201824 Apr 2023Zoom ▾Jul '18Jan '19Jul '19Jan '20Jul '20Jan '21Jul '21Jan '22Jul '22Jan '232019201920202020202120212022202220232023www.fool.com.au

For comparison, the ASX 200 has risen 23% since April 2018.

In the meantime, the mining services provider and producer of iron ore and lithium has been a relatively consistent dividend payer. Let's take a look.

Dividends paid to holders of Mineral Resources shares since 2018

Here are all the dividends paid to those holding Mineral Resources shares since this time five years ago:

Mineral Resources dividends' pay dateTypeDividend amount
March 2023Interim$1.20
September 2022Final$1
August 2021Final$1.75
February 2021Interim$1
August 2020Final77 cents
March 2020Interim23 cents
September 2019 Final31 cents
March 2019Interim13 cents
September 2018Final40 cents
Total: $6.79

That's right, each Mineral Resources share has yielded $6.79 of dividends since April 2018. That means our figurative parcel has likely provided $1,147.51 of passive income.

At that rate, the total return on investment (ROI), considering both dividends and share price gains, offered by the ASX 200 miner in that time reaches an impressive 383%.

And that's before considering the potential compounding that might have been realised had a shareholder reinvested their dividends, using the cash to buy more stock in the company.

Not to mention, all the company's dividends have come fully franked. Thus, they might have provided additional benefits for some investors at tax time.

Right now, Mineral Resources shares offer a 2.78% dividend yield.

Motley Fool contributor Brooke Cooper 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 Dividend Investing

Person handing out $100 notes, symbolising ex-dividend date.
Dividend Investing

5 excellent ASX dividend shares to buy in May

Analysts think these shares are top picks for income investors next month.

Read more »

ETF written on cubes sitting on piles of coins.
Dividend Investing

How can an ASX investment in the Vanguard Australian Shares High Yield ETF (VHY) boost my passive income?

ETFs can be fantastic hands-off sources of passive income.

Read more »

A young male builder with his arms crossed leans against a brick wall and smiles.
Dividend Investing

Building up income: 2 ASX dividend shares I believe are a buy

These stocks are delivering pleasing passive income growth.

Read more »

Australian dollar notes in the pocket of a man's jeans, symbolising dividends.
Dividend Investing

Is this a great opportunity to lock in big dividend yields for a second income?

Has the market selloff created an opportunity for income investors? Let's find out.

Read more »

An athlete runs fast with a trail of yellow smoke billowing out behind him.
Dividend Investing

Don't miss out on these buy-rated ASX 200 dividend shares

Analysts are bullish on these names. Let's find out why.

Read more »

Hand of a woman carrying a bag of money, representing the concept of saving money or earning dividends.
Dividend Investing

Top broker says these ASX dividend stocks are strong buys

Here's why its analysts are feeling bullish on these names.

Read more »

A man holding a cup of coffee puts his thumb up and smiles while at laptop.
Dividend Investing

Buy these highly rated ASX dividend stocks for 5% to 6% yields

These stocks could be quality picks for income investors according to analysts.

Read more »

Modern accountant woman in a light business suit in modern green office with documents and laptop.
Dividend Investing

With an almost 7% dividend yield, is this ASX 200 share a buy?

This business offers significant passive income potential.

Read more »