How does the Fortescue dividend compare with its peers over the last 5 years?

Despite a volatile past 12 months, the Fortescue Metals Group Limited (ASX: FMG) share price has surged 255% since 2017.

The iron ore miner’s shares hit a record high of $26.58 last July before sinking almost 50% in the following months.

Nonetheless, its shares have recovered some lost ground and last traded at $18.56.

The company is well-known for paying juicy dividends to shareholders regardless of times of economic uncertainty.

Let’s dive in to see how the Fortescue dividend stacks up against its peers over the last 5 years.

A recap of Fortescue’s dividend history

Here’s a brief rundown on Fortescue’s most recent dividend history.

• October 2017 – 25 cents (final)

• April 2018 – 11 cents (interim)

• October 2018 – 12 cents (final)

• March 2019 – 30 cents (interim)

• June 2019 – 60 cents (special dividend)

• October 2019 – 24 cents (final)

• April 2020 – 76 cents (interim)

• October 2020 – $1.00 (final)

• March 2021 – $1.47 (interim)

• September 2021 – $2.11 (final)

• March 2022 – 86 cents (interim)

When adding the above amounts, Fortescue has paid a total of $7.82 in dividends to shareholders from five years ago.

At the time of writing, the company has a massive trailing dividend yield of 16%.

So how does this compare with the other 2 big miners?

First and foremost, shares in BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO) have also accelerated.

They are up 84% and 69% respectively since this time in 2017.

But as you can see, both miners’ share price gains pale in comparison to Fortescue.

When looking at the dividend history, BHP has paid a total of $13.31 and Rio Tinto has distributed $39.42 to shareholders.

Bear in mind that BHP shares last traded at $42.98, and Rio Tinto at $106.92 apiece.

The above dividend amounts reflect Fortescue paying around 42% of its current share price in the last 5 years.

In addition, BHP has paid roughly 31% of its current share price, and Rio Tinto at approximately 37%.

BHP and Rio Tinto have a trailing dividend yield of 11.98% and 10.71%, respectively.

Fortescue share price summary

Market swings and weakened investor confidence in the ASX have led the Fortescue share price to register a loss of 4% in 2022.

However, its shares are down 20% over the last 12 months.

Based on valuation grounds, Fortescue presides a market capitalisation of approximately $55.05 billion.

The post How does the Fortescue dividend compare with its peers over the last 5 years? appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras 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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