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.
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.