Twiggy pays a big dividend, no surprises from Fortescue
Stock
Fortescue (ASX:FMG) $4.19 as at 20/08/2018Event
Fortescue’s FY18 numbers were released to the market this morning to little fanfare despite the reasonable result. Adding a chunky dividend to help the Income portfolio. There were no real surprises in the result as much of the data could be deduced from their 4th qtr numbers from a few weeks ago which we spoke about here.
The dividend was the biggest talking point – FMG had flagged a payout ratio of between 50-80%, and disappointed the market in the first half when only 39% of profits were released in the half- likely holding some cash for their tip at Atlas Iron. They made up the difference and some today with a 12c final dividend, placing the payout ratio ~55% for the year. There was no change to guidance for 165-173Mt shipped, $12-13/wmt costs & dividend payout of 50-80% for FY19 and reiterated their plans to sell a higher grade product through blending iron ore. The below chart has caught our eye. This chart is showing the divergence of FMG away from their underlying Iron Ore price proxy:
Source; Shaw & Partners
Fortescue (FMG) Chart
