Everything you need to know about the supercharged IGO dividend

The ASX 200 lithium and nickel miner pleased passive income investors with a massive boost to its final dividend.

| More on:
A smiling businessman in the city looks at his phone and punches the air in celebration of good news.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Looking to grab the supercharged IGO Ltd (ASX: IGO) dividend?

The S&P/ASX 200 Index (ASX: XJO) lithium, nickel and copper miner reported its financial year results this morning for the 12 months ending 30 June (FY23).

And passive income investors will be thrilled to hear that the dividend payout has rocketed to a new all-time high.

Here's what you need to know.

What's happening with the IGO dividend?

The ASX 200 lithium stock reported some impressive numbers this morning.

Highlights included a 278% year-on-year increase in underlying net profit after tax (NPAT) to $1.53 billion. And IGO achieved record underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) of $1.99 billion, up 177% from FY22.

This saw management declare a final fully franked dividend of 44 cents per share plus a special dividend of 16 cents per share, bringing the payout to 60 cents per share.

That's up a whopping 1,100% from the 5 cents per share final IGO dividend paid in FY22.

It brings the full-year payout to 74 cents per share, up 640% from 10 cents per share paid out the prior year. At the current IGO share price, that equates to a fully franked yield (part trailing, part yet to be paid) of 5.4%. And it works out to $560 million returned to shareholders over the 12 months.

Commenting on the supercharged IGO dividend, acting CEO Matt Dusci said:

In FY23, we have generated the strongest set of financial results in IGO's 21-year history, with record revenue, EBITDA and net profit. This has enabled the declaration of a final dividend of 44 cents plus a 16 cent special dividend for FY23, bringing total dividends for FY23 to a record 74 cents per share…

IGO is targeting returns to shareholders in the range of 20% to 40% of underlying free cash flow. The FY23 payout comes in at the top of that range, right at 40%.

Now, if you're looking to grab the 60 cents per share final IGO dividend payout – which by itself represents a pending yield of 4.4% at the current share price of $13.77 – you'll need to own shares at market close on 12 September.

The stock trades ex-dividend on 13 September.

Eligible shareholders can expect to see that passive income land in their bank accounts on 28 September.

Motley Fool contributor Bernd Struben 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.

More on Dividend Investing

A male sharemarket analyst sits at his desk looking intently at his laptop with two other monitors next to him showing stock price movements
Dividend Investing

Brokers name 2 ASX dividend shares to buy

These income options have been given the thumbs up by analysts.

Read more »

Man holding a calculator with Australian dollar notes, symbolising dividends.
Dividend Investing

If I invest $10,000 in Telstra shares, how much passive income will I receive in 2024?

Is Telstra a good option for income investors? Let's find out.

Read more »

a dog sleeping with cucumbers on his eyes
Dividend Investing

Buy 194 shares in this top ASX 200 dividend stock for $873 in passive income

This top ASX 200 dividend stock boosted its passive income payments after delivering $10.2 billion in FY 2023 profits.

Read more »

A family of four wearing Santa hats open presents on the beach next to a Christmas tree.
Dividend Investing

Top ASX passive income shares to buy in December 2023

A healthy flow of passive income can help you live the life you choose. Here are some cracker ideas that…

Read more »

A woman has a thoughtful look on her face as she studies a fan of Australian 20 dollar bills she is holding on one hand while he rest her other hand on her chin in thought.
Bank Shares

Should I buy ANZ shares for the 7% dividend yield?

ANZ is standing out from the banking pack right now.

Read more »

Excited woman holding out $100 notes, symbolising dividends.
Dividend Investing

2 ASX 300 dividend shares that analysts rate as buys

Here's what analysts are saying about these dividend shares.

Read more »

A mature aged man with grey hair and glasses holds a fan of Australian hundred dollar bills up against his mouth and looks skywards with his eyes as though he is thinking what he might do with the cash.
Dividend Investing

Did OPEC+ just crimp the outlook for the 2024 Woodside dividend?

Woodside shares delivered an all-time high final dividend in April.

Read more »

Middle age caucasian man smiling confident drinking coffee at home.
Dividend Investing

3 ASX dividend shares to buy this month

Analysts think that income investors should check out these dividend stocks in December.

Read more »