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.

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.

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.

A happy construction worker or miner holds a fistful of Australian dollar notes.

Image source: Getty Images

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.

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