The Fortescue Metals Group Ltd (ASX: FMG) share price is down 8% so far today.
Fortescue Metals Group or FMG is a global leader in the iron ore industry, known for its leading development of world class infrastructure and mining assets in the Pilbara region of Western Australia. Fortescue was founded in 2003 by Andrew Forrest, who is now one of Australia’s wealthiest people. The vast majority of Fortescue’s iron ore, a steel-making ingredient, is shipped and sold to Chinese customers.
Why The Fortescue Share Price Is Down
The iron ore miner has seen its share price drop because it has gone ex-dividend, meaning it has just allocated its dividend and new investors won’t receive the dividend.
As a reminder, Fortescue recently declared a dividend
amounting to 60 cents per share, fully franked and it will be paid on 14 June 2019.
The iron ore price has recently been rocketing and Fortescue shareholders are benefiting from that with bigger dividends.
I think it’s best to avoid commodity businesses when they appear to be at the top of the price cycle.
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