Owning Fortescue Ltd (ASX: FMG) shares has been a very rewarding experience when it comes to passive income over the last several years. It has delivered huge dividends thanks to the strength of the iron ore price.

Fortescue is now one of the purest ways to invest for exposure to the iron ore industry. These days, BHP Group Ltd (ASX: BHP) and Rio Tinto Ltd (ASX: RIO) both have large copper operations, which gives investors useful diversification.

Nearly all of Fortescue’s value is related to iron ore, and the upcoming dividends will be quite dependent on what happens with the resource price.

We’re going to take a look at what’s forecast for the FY27 Fortescue dividend.

Dividend projection

In FY26, the company reported revenue growth of 9% to US$17 billion, underlying operating profit (EBITDA) rose 9% to US$8.6 billion, operating cash flow improved 6% to US$6.8 billion, free cash flow jumped 25% to US$3.2 billion, underlying net profit after tax (NPAT) grew 3% to US$3.46 billion, and in Australian dollar terms, underlying earnings per share (EPS) only declined by 2% to A$1.66.

That led to the business reducing its annual dividend per Fortescue share by 2% to A$1.08, while keeping the dividend payout ratio at 65%.

The forecast on Commsec suggests a significant decline in the earnings and dividend in the 2027 financial year.

That projection shows EPS could drop to $1.32, which is expected to lead to a fall in the dividend. The estimate on Commsec suggests the annual payout could reduce to 84.6 cents per share, a cut of 22% compared to the FY26 level.

That projected amount suggests the business could pay a dividend yield of 5.2% excluding franking credits and 7.4% including franking credits.

What would a $6,000 investment in Fortescue shares unlock in dividends?

The Fortescue share price is now a lot cheaper, it has dropped 26% this year. When share prices fall, the dividend yield gets a boost. So, prospective investors could still get an appealing dividend yield due to the decline in the Fortescue share price.

Buying $6,000 of the ASX mining share would allow an investor to buy 366 Fortescue shares, with a little bit of change left. If Fortescue does pay that projected amount of 84.6 cents, then it would create $309.64 dividend cash and $442.34 overall income, including franking credits.

Analysts are, overall, quite neutral on the business. According to Commsec, there are currently two buy ratings on the business, 10 hold ratings and four sell ratings. Therefore, it looks like other ASX shares could be better opportunities to buy.

The post If I buy $6,000 of Fortescue shares, how much dividend income will I receive? appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison 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 recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Steadfast Group vs AUB Group shares: Which insurance broker offers better value?

Choosing between Steadfast Group Ltd (ASX: SDF) and AUB Group Ltd (ASX: AUB) can be a tough ask for investors focused on Australia’s bustling insurance broking industry. Both are heavyweights with strong broker networks, proud dividend histories, and a growing international presence. But when it comes to value for your investment dollar, how do these two stack up? Here’s my take, with a focus on the numbers that really set them apart.

The case for Steadfast

Steadfast is the largest general insurance broker network and group of underwriting agencies in Australia and New Zealand, with a footprint spanning more than 430 brokers and around 2,000 offices according to its most recent public description. The company’s reach extends to Singapore, the UK, Germany, and more recently, the United States – thanks to recent acquisitions and the rollout of the ISU Steadfast brand.

Standout fundamentals for Steadfast Group:

• Market capitalisation sits at $6.38 billion, making it the biggest listed player in its patch.
• P/E ratio of 23.58, which is relatively moderate for the sector.
• Dividend yield of 3.66%, fully franked.
• Year to date return of 12.49%, showing positive momentum in a tough market.

Steadfast also offers 100% franking on all dividends, and its payout has steadily increased over recent years based on the data provided. The group acts not just as a broker but a consolidator, directly owning stakes in a host of its network businesses.

The case for AUB

AUB Group is another major insurance services player, boasting a significant broker network across Australia, New Zealand, the US, the UK, and Europe. According to its most recent profile, the AUB network covers more than 570 locations and writes a substantial amount of gross written premium. Like Steadfast, AUB holds equity stakes in partner brokerages and various underwriting agencies.

Key fundamentals for AUB:

• Market cap of $3.63 billion, about half the size of Steadfast.
• P/E ratio of 36.74 – noticeably higher than Steadfast’s.
• 3.41% fully franked dividend yield.
• Year to date return of -3.51%, marking a negative trend so far this year.

AUB also boasts 100% franking and a long, reliable record of dividend payments, with the most recent full-year payout reaching $0.98 per share.

Valuation comparison

Here’s how these two insurance brokers shake out on the key numbers:

Metric	Steadfast Group	AUB Group
Market Cap	$6.38 billion	$3.63 billion
P/E Ratio	23.58	36.74
EPS	0.243	0.782
Dividend Yield	3.66% (100% franked)	3.41% (100% franked)
Dividend per share	$0.21	$0.98
YTD Return	12.5%	-3.5%

A few things stand out: Steadfast trades at a significantly lower P/E ratio than AUB. Both companies’ dividends are fully franked, though AUB pays out a higher absolute amount per share, likely due to its higher share price. The dividend yields are similar, but Steadfast edges slightly higher.

Note: AUB Group’s reported P/E ratio (36.74) and EPS (0.782) suggest a price much higher than the current trading level. Steadfast’s P/E and EPS also don’t exactly align. The disparity could be due to differences in the way the earnings figure is calculated for each ratio (for example, normalised or forward earnings).

Recent share price performance

Comparing recent share price activity up to 24 September 2026:

• Steadfast Group closed at $5.74, up 12.5% for the year to date, with steady, gentle gains through September and limited volatility.
• AUB Group finished at $27.81, down 3.5% YTD, and experienced more price swings, including a notable -3.24% drop on the last trading day.

Which is the better buy?

If I’m focused on value – especially relative to fundamentals and recent performance – my pick would be Steadfast. The company is larger, has positive momentum (up 12.5% YTD), and trades on a much lower P/E ratio than AUB Group. While AUB pays out a larger absolute dividend per share, Steadfast actually offers a higher yield based on the current share price, and both are 100% franked.

I like that Steadfast is not only maintaining but steadily increasing its dividend, and its international expansion appears to be gaining traction. On the flip side, AUB is a high-quality business but, at the time of writing, seems to be priced at a premium and has lagged on recent performance. Unless you have a strong reason to pay up for AUB’s earnings growth or international footprint, I’d lean towards Steadfast as offering better bang for your investment buck right now.

The post Steadfast vs AUB: Which insurance broker offers better value? appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart 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 recommended Aub Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial draft. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

The Pinnacle Investment Management Group Ltd (ASX: PNI) share price may be in focus today as the company reported an NPAT of $176.7 million for the financial year ended 30 June 2026, with its stake in Metrics Credit Holdings contributing $12.6 million to the result.

What did Pinnacle Investment Management report?

• Net profit after tax (NPAT) of $176.7 million for FY26
• Approximately $12.6 million contributed to NPAT from Metrics Credit Holdings
• Pinnacle holds a 35% equity interest in Metrics Credit Holdings Pty Limited
• The Metrics funds—MXT, MOT, and MRE—have paused trading temporarily

What else do investors need to know?

The three Metrics-managed funds—Metrics Master Income Trust (ASX: MXT), Metrics Income Opportunities Trust (ASX: MOT), and Metrics Real Estate Multi-Strategy Fund (ASX: MRE)—have temporarily paused trading on the ASX, pending further announcements. This move has placed a spotlight on both the funds and their manager, Metrics Credit Partners, an affiliate of Pinnacle.

Investors should note that Pinnacle’s exposure to Metrics Credit Holdings represents a significant portion of its earnings, and any updates to the Metrics funds could impact Pinnacle’s reported results or future distributions.

What’s next for Pinnacle Investment Management Group?

Investors will be watching for further details on the reason for the trading pause in the Metrics funds and how any developments might affect Pinnacle’s future income from Metrics. The company continues to benefit from its diversified investment management affiliates, and maintaining strong relationships with its managers may remain a strategic focus.

Looking forward, any resolutions related to the paused funds, and further growth in affiliated manager platforms, could shape Pinnacle’s earnings profile for the coming year.

Pinnacle Investment Management share price snapshot

Over the past 12 months, Pinnacle Investment Management shares have declined 31%, trailing the S&P/ASX 200 Index (ASX: XJO), which has declined 2% over the same period.

View Original Announcement

The post Pinnacle Investment Management reports FY26 profit and Metrics funds update appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Pinnacle Investment Management Group. The Motley Fool Australia has positions in and has recommended Pinnacle Investment Management Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.