The Fortescue Metals Group Ltd (ASX: FMG) share price is under pressure on Wednesday.
This follows the release of the iron ore giantâs half year results.
What happened during the first half?
As we covered here earlier in greater detail, Fortescue reported a 3.6% decline in revenue to US$7.84 billion during the first half. This was driven by softer iron ore prices, which offset the minerâs record-breaking shipments.
It was a similar story for its earnings, with Fortescueâs underlying earnings before interest, tax, depreciation and amortisation (EBITDA) falling 8.7% to US$4.35 billion
What about the Fortescue dividend?
Given how the Fortescue dividend has been one of the biggest on the market in recent years, investors will no doubt have been eagerly anticipating this release.
Unfortunately, the minerâs dividend took the biggest hit of them all. The Fortescue board declared a fully franked interim dividend of 75 cents per share, which was down almost 13% from a year earlier.
This represents a 65% payout of net profit after tax. This is consistent with Fortescueâs dividend policy to pay 50% to 80% of full year profits to shareholders.
When is payday?
The ex-dividend date for this is 27 February, with the dividend then scheduled to be paid to shareholders on 29 March.
Fortescue also advised that it will be operating its dividend reinvestment plan again, allowing eligible shareholders to elect to invest dividends in ordinary shares.
The issue price for shares under the plan will be calculated as the average of the daily volume weighted average market price for Fortescue shares during the five-day period commencing 2 March. There will be no discount to the allocation price and the plan will not be underwritten.
If you want to take part in the dividend reinvestment plan, you will need to apply before 1 March. Shares will then be allocated to shareholders on 29 March.
The post Here’s what you need to know about the latest Fortescue dividend appeared first on The Motley Fool Australia.
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More reading
- Fortescue share price sinks amid 13% dividend cut
- Earnings preview: Here are the ASX shares reporting on Wednesday
- Here’s the iron ore price forecast for 2023: CBA
- Better buy: Fortescue vs BHP shares
- Own Fortescue shares? Hereâs what the market expects from its half year results
Motley Fool contributor James Mickleboro 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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