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Highlights:
- Fortescue offers highest dividend yield among the top ASX200 materials companies.
- The ASX-listed materials giant offers dividend yield of 17.26% as of now.
- Fortescue has announced dividend of AU$2.970 per share in last 12 months.
The dividend yield offered by Fortescue Metals Group Ltd (ASX:FMG) surpasses the yield provided by its ASX 200 materials peers.
On Friday (8 July 2022), Fortescue shares were trading 2.79% higher at AU$17.68 apiece at 11:27 AM AEST on the ASX. With this share price, the AU$50.74 billion market capitalisation firm was quoting 17.26% of a dividend yield.
Fortescue shares were trading in line with its benchmark index, ASX200 Materials (INDEXASX:XMJ) which was up 2.40% to 15,416.90.
Dividend yield offered by Fortescue
Image source: © Kritchanut | Megapixl.com
Dividend yield shows the return an investor receives against the per dollar invested. If a company pays a high dividend yield, it can be interpreted that the company is distributing a substantial share of its profit amongst the shareholders. Noteworthy here is that investment decisions should not be made solely based on dividend yield.
If an investor got Fortescue shares last year, he would be having AU$2.970 as dividend for each share held during that time.
In September 2021, the company distributed a dividend of AU$2.110 per share, and in March 2022, AU$0.860 per share of the dividend was announced.
This is a considerable increase in the dividend declared two years back. In October 2020, AU$1.00 per share of the dividend was distributed. AU$1.470 dividend per share was distributed in March 2021, taking the total for the year to AU$2.470.
In addition to this, the company pays a fully franked dividend, which means the shareholders can also enjoy the tax advantage.
Talking about the dividend yield offered by others top ASX200 Materials companies (by market capitalisation), Fortescue provides the highest yield.
BHP Group Limited (ASX:BHP) was trading with a dividend yield of 10.96%, Rio Tinto Limited (ASX:RIO) with 14.64% and Newcrest Mining Limited (ASX:NCM) with 3.32%, as per ASX website, 3:20 PM AEST.
Fortescue in other news
Recently, Fortescue’s green leg, Fortescue Future Industries (FFI) has signed a deal with the Djibouti government to study green hydrogen production in Djibouti.
On Tuesday (6 July), FFI said that under the agreement, the company would explore the subsurface gas storage areas and renewable energy resources along with industrial areas in Djibouti. Depending on the study results, both parties might discuss the investment agreement to construct a green hydrogen production facility.
For context, the country intends to achieve 100% renewable energy power production by 2035.
About Fortescue
Fortescue is a West Australian company established in 2003. According to the company’s official website, the iron ore business of Fortescue includes integrated marketing, mining, shipping and rail teams who work together to export more than 180 million tonnes of iron ore in a year. With innovation and technology, the company ensures that it maintains its position as one of the world’s low-cost iron ore producing companies.
