AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
Highlights
- FMG shares are trading with an above-average dividend yield
- Fortescue expands into new metals amid clean energy demand
- ASX materials sector shows steady long-term potential
The share price of Fortescue Ltd (ASX:FMG) has slipped 13.9% since the beginning of 2025. However, this decline comes amid broader structural shifts in the global economy that continue to highlight the role of materials companies. Fortescue’s long-term outlook and dividend profile may present interest for those keeping an eye on the ASX200 and looking at potential opportunities in the resources sector.
A Leading Iron Ore Exporter with Global Expansion Plans
Fortescue, headquartered in Perth and founded in 2003, remains one of the world’s largest iron ore producers, with exports exceeding 190 million tonnes annually. The company’s core operations are located in the Pilbara region of Western Australia. In recent years, Fortescue has broadened its exploration focus, branching into high-demand minerals such as copper, lithium, and rare earths across regions including Chile, Brazil, Argentina, Kazakhstan, and other parts of Australia.
This shift reflects the company’s strategy to diversify its resource base and position itself in the supply chain for emerging technologies and renewable infrastructure. These metals play a vital role in manufacturing electric vehicles, solar panels, and battery systems, all of which are essential to the global energy transition.
Reliable Income in a Volatile Market
One of the key attractions of companies in the materials sector is their track record of distributing high dividends. Fortescue is no exception. Over the last five years, the average dividend yield has been 10.52%, and the current yield stands at around 12.12%. This figure suggests the company may be offering stronger cash returns relative to its historical average.
It's important to understand that such a yield could be influenced by either higher payouts or a lower share price. In Fortescue’s case, recent dividends have outpaced the three-year average, signaling dividend growth amid broader business expansion.
The Materials Sector Still Has Room to Run
Despite share price fluctuations, companies within the materials space like Fortescue, BHP Group (ASX:BHP), and Rio Tinto (ASX:RIO) continue to play a fundamental role in powering industrial growth and the clean energy transition. The ASX dividend stocks category remains a focal point for those seeking income-backed exposure to Australia’s resource-rich landscape.
The S&P/ASX200 Materials Index (ASX:XMJ) has delivered 7.35% annual capital growth over the past five years, which demonstrates that even in a volatile sector, there are opportunities to participate in long-term structural trends that support global development and clean energy demand.
