What is expected from the Allkem dividend?According to a recent...

What is expected from the Allkem dividend?

According to a recent note out of Credit Suisse, its analysts are not expecting dividends from Allkem in FY 2022. But in FY 2023, it is predicting a maiden dividend of 69 U.S. cents per share.

Based on current exchange rates, this will mean a $1.02 per share dividend for investors.

The good news is that Credit Suisse expects the company to build on this in FY 2024. It is forecasting a dividend of 71 US cents per share. This represents a $1.05 per share dividend in the local currency.

So, with the Allkem share price currently trading at $9.89, this will mean very attractive yields of 10.3% in FY 2023 and then 10.6%, respectively.

Are Allkem shares in the buy zone?

Despite predicting these big dividends, Credit Suisse only has a neutral rating on Allkem’s shares at this point.

Though, with a price target of $11.00, it still sees potential upside of 11% for the Allkem share price over the next 12 months. That’s not bad for a neutral rating!

All in all, this could make Allkem worth considering if you’re looking for exposure to lithium and some big dividends in the coming years.