If you bought $20,000 worth of Fortescue shares this year, here’s how much dividend income you’d have

Miner holding cash which represents dividends.

Miner holding cash which represents dividends.

Perhaps no ASX 200 dividend share has gotten more attention in recent years than Fortescue Metals Group Limited (ASX: FMG).

Fortescue shares are notoriously volatile. This iron-ore mining company has fluctuated between $14.50 and $22.99 a share over just the past 12 months, after all.

But no one can take the fact that Fortescue has been absolutely pouring cash into shareholders’ pockets in recent years.

But exactly how much cash are we talking about for 2022? That’s what we’ll answer today.

How much income would $20,000 worth of Fortescue shares have yielded in 2022?

Let’s assume an investor bought $20,000 worth of Fortescue shares at the start of 2022. The company finished up 2021 trading at a share price of $19.21, so we’ll use that as our benchmark.

So $20,000 would have bagged our hypothetical investor 1,041 Fortescue shares at this price, with a little change left over.

Fortescue has once again funded two dividend payments for its shareholders over this year. The first was the interim dividend from March, worth 86 cents per share. The second was the September final dividend that came in at $1.21 a share. Both payments were fully franked.

These dividends equate to the second-highest annual dividend Fortescue has ever paid. The highest was in 2021, which saw an interim dividend of $1.47 per share, and a final dividend of $2.11.

So our 1,041 Fortescue shares would have granted our investor a payment of $895.26 in dividend income. The final dividend would have yielded up another $1,259.61, bringing the total for 2022 to $2,154.87.

That represents a very healthy yield on our cost base of 10.78%. Including Fortescue’s full franking, that grosses up to a pleasing 15.39%.

Fortescue has had a mildly disappointing year, share price-wise, though. Currently, the miner’s shares are down 4.58% year-to-date. Saying that, investors are still up by 10.18% over the past 12 months though. Over the past five years, Fortescue has appreciated by a whopping 316%.

The post If you bought $20,000 worth of Fortescue shares this year, here’s how much dividend income you’d have appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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