Of all of the ASX lithium stocks on our share market, Vulcan Energy Resources Ltd (ASX: VUL) has certainly become one of the most popular. That tends to be what happens when a company goes from 20 cents a share (in 2020) to a high of $16.65 (September 2021), giving investors a return of over 8,000% in the process.
Today, Vulcan Energy shares have fallen away from the stupendous highs we saw last year. The company closed at $7.47 a share today.
But now that the company has stopped breaking new all-time highs, it might be a good time to ask some questions of this ASX lithium stock. So let’s go with ‘Do Vulcan Energy shares pay dividends?’.
Do Vulcan Energy shares pay out dividends?
Many ASX mining and resources companies on our share market pay dividends. Heck, some, like BHP Group Ltd (ASX: BHP) and Fortescue Metals Group Limited (ASX: FMG), are famous for it. But that reputation does not extend to ASX lithium stocks. As we covered earlier this week, there aren’t too many ASX lithium stocks that even pay dividends. So is Vulcan Energy one of the lucky few?
Well, sadly no. Vulcan Energy shares do not currently pay a dividend. And nor have they ever.
What’s more, a quick look at the company’s books indicates that a dividend probably won’t happen anytime soon either. Its recently released quarterly cash flow report covering the three months to 31 March 2022 shows that Vulcan Energy’s net cash from operating activities was a loss of just over three million euros. For a company to be able to fund a dividend, it usually needs to be comfortably profitable and cash flow positive first.
So it looks as though income investors will have to wait at least a little longer to see a dividend come out of Vulcan Energy Resources shares.