Own Pilbara Minerals shares? Today is a good day

Sometimes it pays to invest in lithium shares.

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Today is a good day to own Pilbara Minerals Ltd (ASX: PLS) shares for a couple of reasons.

The first is that the lithium miner's shares are pushing higher today despite the market edging lower again.

At the time of writing, Pilbara Minerals share price is up 1.5% to $4.17.

Why else is it a good day to own Pilbara Minerals shares?

There's an even bigger reason why today is a good day for shareholders of the lithium giant. But what is it?

Well, if you have been a shareholder since before the company's ex-dividend date of 5 September, then today is payday for you.

As a reminder, last month Pilbara Minerals released its full-year results and reported a whopping 242% increase in revenue to $4,064 million and an even greater 329% jump in underlying profit after tax to $2,276.3 million.

This allowed Pilbara Minerals to follow up its inaugural interim dividend earlier this year with its first-ever final dividend.

The Pilbara Minerals board declared a fully franked 14 cents per share final dividend, which brought its FY 2023 dividends to a total of 25 cents per share.

Based on where Pilbara Minerals shares were trading before going ex-dividend, this final dividend equates to an attractive 2.9% yield.

To put that into context, if you had $10,000 invested in this lithium share, you would be receiving approximately $290 in dividends today.

What's next?

According to a recent note out of Macquarie, its analysts are expecting the company to pay fully franked dividends of 20 cents per share in FY 2024. This will mean a dividend yield of 4.8% at current levels.

The broker also sees a significant upside for Pilbara Minerals shares with its outperform rating and $7.30 price target.

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 positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. 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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