Looking to grab the supercharged IGO Ltd (ASX: IGO) dividend?
The S&P/ASX 200 Index (ASX: XJO) lithium, nickel and copper miner reported its financial year results this morning for the 12 months ending 30 June (FY23).
And passive income investors will be thrilled to hear that the dividend payout has rocketed to a new all-time high.
Here's what you need to know.
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What's happening with the IGO dividend?
The ASX 200 lithium stock reported some impressive numbers this morning.
Highlights included a 278% year-on-year increase in underlying net profit after tax (NPAT) to $1.53 billion. And IGO achieved record underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) of $1.99 billion, up 177% from FY22.
This saw management declare a final fully franked dividend of 44 cents per share plus a special dividend of 16 cents per share, bringing the payout to 60 cents per share.
That's up a whopping 1,100% from the 5 cents per share final IGO dividend paid in FY22.
It brings the full-year payout to 74 cents per share, up 640% from 10 cents per share paid out the prior year. At the current IGO share price, that equates to a fully franked yield (part trailing, part yet to be paid) of 5.4%. And it works out to $560 million returned to shareholders over the 12 months.
Commenting on the supercharged IGO dividend, acting CEO Matt Dusci said:
In FY23, we have generated the strongest set of financial results in IGO's 21-year history, with record revenue, EBITDA and net profit. This has enabled the declaration of a final dividend of 44 cents plus a 16 cent special dividend for FY23, bringing total dividends for FY23 to a record 74 cents per share…
IGO is targeting returns to shareholders in the range of 20% to 40% of underlying free cash flow. The FY23 payout comes in at the top of that range, right at 40%.
Now, if you're looking to grab the 60 cents per share final IGO dividend payout – which by itself represents a pending yield of 4.4% at the current share price of $13.77 – you'll need to own shares at market close on 12 September.
The stock trades ex-dividend on 13 September.
Eligible shareholders can expect to see that passive income land in their bank accounts on 28 September.
