Keen to bag the latest South32 dividend? Time is running out

Better get moving if you want this mining giant's next dividend.

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If you want to receive the next South32 Ltd (ASX: S32) dividend, then you will need to get a wriggle on.

That's because the mining giant's shares will be trading ex-dividend tomorrow.

This means that you have until the close of play today to get on South32's share registry if you want to qualify for this dividend.

The South32 dividend

Last month, South32 released its FY 2023 results and reported a 20% decline in revenue to US$7,429 million and a 65% reduction in underlying earnings to US$916 million.

As you might expect, this led to the miner having to cut its dividend in FY 2023. South32's final dividend came in at 3.2 US cents per share, taking its full-year fully franked dividend to 8.1 US cents per share. This represents a 64% drop from the 22.7 US cents per share investors received for FY 2022.

Based on current exchange rates, South32's final dividend is approximately 5 Australian cents per share. This equates to a fully franked dividend yield of 1.5% at current prices.

Should you buy shares?

The team at Morgans believes that South32 shares would be a great option for investors right now. Last month, the broker put an add rating and $5.20 price target on the miner's shares. This implies a potential upside of almost 60% for investors over the next 12 months.

What about future dividends? Well, Morgans is expecting an attractive dividend yield in FY 2024. It has pencilled in a fully franked dividend of 16.5 cents, which represents a 5% dividend yield.

The broker likes South32 because it offers "a highly diversified portfolio of base metals and metallurgical coal (with most of these metals enjoying solid price strength)."

Morgans also highlights that its analysts "see attractive long-term value potential in S32 from de-risking of its growth portfolio, the potential for further portfolio changes, and an earnings-linked dividend policy."

Motley Fool contributor James Mickleboro 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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