RIO, MIN, WES: A look at ASX lithium stocks paying dividends

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RIO, MIN, WES: A look at ASX lithium stocks paying dividends

RIO, MIN, WES: A look at ASX lithium stocks paying dividends
Image source: © Olivier26 | Megapixl.com

Highlights

  • Crucial battery metal lithium has seen its demand rise significantly in the recent past.

  • The price of lithium has risen over 500% in the last twelve months.

  • MIN, RIO and WES are three dividend-paying ASX companies with exposure to lithium.

The demand for lithium has increased manifold in the recent past due to tight supply of the white metal. While the demand for electric vehicles (EVs) is on rise, the supply of lithium remains on the lower side. Lithium is one of the major elements used in production of batteries, which form the core of EVs.

The price of lithium has ballooned over 500% in the last twelve months. This is what has kept investors’ interest high in ASX-listed lithium shares.

However, there are not many ASX-listed lithium firms which are currently paying dividends to their shareholders.  In fact, most of these companies are reinvesting the cash back into operations to meet the rising demand. As such, there are not many dividend-paying lithium stocks on the ASX 200.

On this note, let’s discuss three dividend-paying lithium stocks. Here we have included even those companies which are slowly increasing their presence in the lithium sector.

Mineral Resources Ltd (ASX:MIN)

Mineral Resources provides mining infrastructure services in Australia. The ASX-listed company is into integrated supply of goods and services and operates segments like mining, mineral services, and processing. The company’s lithium projects are located at Mt Marion and Wodgina.

Mineral Resources has an annual dividend yield of 5.17%. The company’s dividend yield received a major boost from high margin prices in its iron ore business.

The AU$10.5 billion company paid a fully franked final dividen of AU$1.750 on 7 September 2021.

Rio Tinto Ltd (ASX:RIO)

Rio Tinto Group is an Anglo-Australian multinational company, which is the world's second-largest metals and mining corporation. The company has recently increased its exposure to lithium. It recently signed a deal to acquire the Rincon Lithium project in Argentina for US$825 million.

The AU$39.2 billion company announced the highest ever dividend to its shareholders in its half-yearly report for the financial year 2022 (1HFY22).

The company’s board declared a US$16.8 billion full-year dividend, equivalent to 1,040 US cents per share and 79% of underlying earnings in 1H22. It includes US$6.7 billion record final ordinary dividend (417 US cents per share) and US$1.0 billion final special dividends.

Rio Tinto has an annual dividend yield of 13.75%.

Wesfarmers Ltd (ASX:WES)

Wesfarmers is an Australian conglomerate with interests predominantly in Australia and New Zealand, operating in retail, chemical, fertiliser, industrial and safety products.

While the consumer conglomerate may not be a proper lithium share, it is slowly trying to increase its exposure to the sector. The company has also acquired Kidman Resources, which is working in unison with Wesfarmers’ jointly owned Covalent Lithium.

The AU$55.94 billion company has an annual dividend yield of 3.48%. It paid a dividend of AU$0.800 on 30 March 2022.

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