Those invested in S&P/ASX 200 Index (ASX: XJO) mining share Iluka Resources Limited (ASX: ILU) were likely overjoyed by the company's latest half-year earnings.
Its results were released to the market yesterday and contained a welcome surprise for investors – a whopping 25-cent interim dividend.
Not only is that the ASX 200 company's largest payout in four years, but it's also more than double what it offered to its shares investors in February.
The Iluka Resources share price launched 10% on the back of the news. It closed Wednesday's session at $10.38, its highest point in 11 weeks. And it's back on the horse today. It's trading 2.4% higher at $10.63 right now.
For comparison, the ASX 200 finished yesterday in the green, having lifted 0.5%. It's up another 0.81% at the time of writing.
Let's take a closer look at the latest dividend offered by the ASX 200 mineral sands giant.
ASX 200 share Iluka Resources doubles interim dividend
Owners of Iluka Resources shares, rejoice! You've got a whopping 25-cent interim dividend coming your way. And a fully franked one at that.
That's equal to the second largest dividend ever paid by the company, handed out in 2018, and only bested by a 55-cent payout offered in 2012.
Iluka Resources posted a $388.5 million profit for the first half yesterday. That represented a 185.7% increase on the prior corresponding period, as my Fool colleague Monica reported.
Its underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) also lifted 70.5% to $525.5 million. Finally, its free cash flow came in at $600.3 million.
Its latest offering included, the stock is trading with an approximate 3.45% dividend yield.
The company also offers a dividend reinvestment plan (DRP) for those more interested in growing their investment than cash payouts.
The ASX 200 share will trade ex-dividend on 5 September. That will likely see its share price fall in line with its interim payout. The 25-cent dividend will start to hit investors' accounts on 30 September.
