ASX 200 lithium shares have been gaining popularity in the last couple of years, but only some of them pay a dividend.
Two ASX 200 lithium shares that could be buys for passive income are Pilbara Minerals Ltd (ASX: PLS) and Mineral Resources Ltd (ASX: MIN).
Let's take a look at these two ASX 200 lithium shares in more detail.
Mineral Resources
Mineral Resources is not just an ASX 200 lithium share, the company also produces iron ore. The company has part ownership of two lithium mines – the Mt Marion Lithium Project and the Wodgina Lithium Project, both in Western Australia.
Mineral Resources delivered a dividend of $1.20 in the first half of this year and $1 in the second half of last year.
This means in the past year, Mineral Resources has delivered $2.20 worth of dividends to investors. This represents a trailing dividend yield of 3.06% based on the company's last closing price of $71.93.
On this basis, I could have earned $100 a month ($1200 yearly) if I had invested $39,216 in Mineral Resources shares in the last year.
Mineral Resources shares have risen 28.26% in the past 52 weeks but have fallen nearly 7% in the last month.
Looking ahead, analysts at Morgans are tipping Mineral Resources to pay a fully franked dividend of $5.79 in the 2024 financial year. This represents a forward dividend yield of 8.05% based on the current share price.
If this was to eventuate, I would only need to invest $14,907 a year or $1,242 a month over 12 months to achieve a monthly passive income of $100 (or yearly income of $1,200) from this ASX 200 lithium share.
Pilbara Minerals
Pilbara Minerals announced a maiden interim dividend in the first half of this year of 11 cents per share.
However, analysts are tipping Pilbara's dividend could increase in the future.
Macquarie is tipping Pilbara to pay fully franked dividends per share of 42 cents in total in FY23.
Looking at this forecast, a 42 cents per share dividend for the financial year would equate to a dividend yield of 10% based on Pilbara's last closing share price of $4.20.
On this basis, you could achieve $100 income a month ($1,200 annually) from Pilbara shares if you invested $12,000 a year (or $1,000 each month for a year) in the company's share price.
Pilbara shares have returned 58% in the last year and are currently fetching $4.20.
Pilbara produced 148,131 dry metric tonnes (DMT) of spodumene concentrate in the March quarter of 2023. This was down 9% on the previous quarter. However, the company's cash balance increased 21% on the previous quarter to $457 million.
