AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
Weak performance in FY 18: Fortescue Metals Group Limitedâs (ASX:FMG) stock edged up 0.594% on August 20, 2018 (before market close) after falling initially while the company reported weak performance in FY 18 with 58% fall in annual profit after tax to $878 million on the back of declining prices and demand for its iron ore from China. The underlying EBITDA fell by 33% and the underlying net profit after tax fell by 49% to $1080 million in 2018. C1 operating costs fell to average US$12.36/wmt in FY18, which is a four per cent reduction compared to FY17.
[optin-monster-shortcode id="wxhmli4jjedneglg1trq"]The company has posted US$0.5 billion reduction in debt and restructured the terms to the investment grade. The company has declared total FY18 dividends of A$0.23 per share, which represents a dividend payout ratio of 62 per cent of net profit after tax. The companyâs cash on hand at 30 June 2018 is US$863 million. Additionally, for FY 19, the company expects 165-173mt in shipments, capex to be $1.2 billion and C1 cost to be in the range of US$12-13.00/wmt. A 60% iron content product, named West Pilbara Fines, is expected to be produced in the second half of FY19 in advance of the development of the Eliwana mine and rail project. In 2019, the company will maintain dividend pay-out ratio at 50 to 80 per cent of net profit after tax of full year earnings. Therefore, FMG stock has fallen 14.08% in three months as on August 17, 2018 and is trading at a P/E of 6.87x.
FY 18 Financial Performance (Source: Company Reports)
The Income available from dividends remains attractive for many investors.
We take a look at the best yields on the market and assess what they say about a companyâs prospect.
One Thing is certain, though, Australia interest rates are still low, making income difficult to come by and keeping the focus for many investors on high yielding stocks. Kalkineâs team of analysts bought you handpicked report for âTop 25 Dividend Stocks For 2018.â
ASX-relevant Special Reports are published year-round to provide a detailed analysis into an investing opportunity or a potential risk to your portfolio.
Click here to get your free report.
Disclaimer
The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkinemedia.com and associated websites are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.
