Pilbara Minerals Ltd (ASX: PLS) shares would have been a great addition to your investment portfolio 12 months ago.
That's because, since this time last year, the lithium miner's shares have smashed the market with a massive 113% gain. This can be seen on the chart below.
As a comparison, the benchmark S&P/ASX 200 Index (ASX: XJO) has risen a more than respectable 10.5%.
But that was the last 12 months. What could happen if you invested $10,000 into Pilbara Minerals shares today?
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Would investing $10,000 in Pilbara Minerals shares be a good idea?
Firstly, if you were to invest $10,000 into this lithium miner, you would end up owning 1,969 shares.
What could they be worth in 12 months?
While opinion remains somewhat divided on where Pilbara Minerals shares are going next, one leading remains extremely bullish.
According to a recent note out of Macquarie, its analysts have an outperform rating and a $7.30 price target on them.
If Macquarie is on the money with this recommendation, your 1,969 shares would be worth $14,373.70.
But the returns won't necessarily stop there. With Pilbara Minerals' capital management framework now in place, the miner has started to pay dividends.
Macquarie is expecting this to lead to fully franked dividends of 40 cents per share in FY 2023 and 27 cents per share in FY 2024.
This would mean a final dividend of 29 cents in August and then potentially a 13.5 cents per share interim dividend in February. This totals 42.5 cents per share over the next 12 months.
So, your 1,969 Pilbara Minerals shares could yield a total of $836.83 in dividends if these estimates are accurate. And if you reinvest these dividends, you would have a holding valued at $15,210.53.
That's a ~52% return over the 12 months. Not bad!
