Thoughts on FMG dividend

Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.

Ask a question

The Latest Q&A

Question asked 19/02/2022

Thoughts on FMG dividend

Hi A couple of weeks ago there was a comment in the email of a rumour suggesting that the FMG dividend could be $1.92. That seemed a bit optimistic (although it would have been fantastic if true) but even so, todays $0.86 a share was a bit underwhelming but probably about right (as suggested in the afternoon note) considering how the iron ore price fared in 2H22. How could the two figures be so far out of whack? Cheers, Carl

Answer

Hi Carl,

Fortescue Metals Group (FMG) $21.04: Rumours are just that and something we never invest / trade on, the dividend actually came pretty much in line with consensus market expectations but there are always outliers in the analyst community, we actually thought they would print a higher number based on our analysts view. Being non-consensus (and right) will always make you more money than being inline with consensus and right.

Overall we still see FMG back into the $19-20 region in the coming weeks.

chart

Fortescue Metals (FMG)

LAST UPDATED 18/02/2022 15:36

Latest Reports

Afternoon report 24/04/2024

The Match Out: CPI dents equity rally ahead of ANZAC Day

Equities followed the US market higher this morning, also adding a little premium thanks to a handful of positive quarterly reports that were announced after the North American markets closed. That all took a back seat as inflation data printed late morning, CPI coming in hotter than expected which sent the market into a spin, falling ~0.6% at the time before finding some relief. In the end, the index closed little changed, a good result given the circumstances though largely thanks to support from the Big 4 banks.

Morning report 24/04/2024

Portfolio Positioning: Bonds fell, dragging stocks along for the ride, both are now basing in our opinion

Bond markets have struggled over recent weeks as inflation appeared increasingly “sticky,” but it hardly registers on the chart compared to their weakness through 2021/2 and mid-2023. We believe the local credit markets have come back to realistic levels as the RBA awaits further economic data to deliver clarity on the underlying strength and direction of the local economy. Traders have gone from being far too optimistic on rate cuts into Christmas to becoming almost pessimistic; the US futures markets have gone from pricing in three cuts to 1.77 cuts, or one definitely, and probably two.