Pilbara Minerals share price charging higher on maiden dividend

ASX 200 investors are bidding up the company's share price on the back of some very strong half-year results.

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Key points
  • The Pilbara Minerals share price is up around 5% 
  • The ASX 200 lithium miner reported its half-year results today
  • With profits surging, Pilbara’s board declared the company’s inaugural dividend payment

The Pilbara Minerals Ltd (ASX: PLS) share price is up 4.8% in afternoon trade on Friday. Shares are currently swapping hands for $4.69 apiece.

This comes following a 5.1% gain yesterday for the S&P/ASX 200 Index (ASX: XJO) lithium stock.

Investors are bidding up the Pilbara Mineral share price following some very strong half-year results, released after market close yesterday.

Here's what's drawing investor interest.

Female South32 miner smiling with mining machinery in the background.

Image source: Getty Images

What did the ASX 200 lithium stock report?

Pilbara Minerals reported growth across all the major financial metrics.

The miner's spodumene concentrate production increased 83% from the first half of the 2022 financial year. This helped drive a 305% increase in revenue, which reached $2.2 billion.

Statutory net profit after tax (NPAT) leapt 989% from the prior corresponding half-year to $1.2 billion. The profit for the company's half-year represents earnings per share (EPS) of 41.59 cents.

And the company strengthened its balance sheet to the tune of $1.6 billion, reporting a 31 December cash position of $2.2 billion.

"The stage is set for Pilbara Minerals to take massive growth steps in the months and years ahead. This is just the beginning," a clearly pleased CEO, Dale Henderson said.

On the back of these strong results, and offering tailwinds to the Pilbara Minerals share price today, the board also declared its first-ever dividend of 11 cents per share, fully franked.

Pilbara Minerals shares trade ex-dividend on 2 March. If you own shares before then, you can expect payment on 24 March. At the current share price, the maiden dividend gives the company a trailing yield of 2.4%.

Mineral Resources Ltd (ASX: MIN) is the only ASX 200 lithium stock that pays a higher trailing yield, currently at 2.6%.

Pilbara Minerals share price snapshot

With today's intraday gains factored in the Pilbara Minerals share price – pictured below – is up 79% over the past 12 months.

Motley Fool contributor Bernd Struben 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.

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