Site menu

Search by ticker code:
Generic filters


Search by ticker code:
Generic filters

Search by ticker code:
Generic filters

Fortescue (ASX:FMG) share price rises on massive HY24 dividend, result

The Fortescue Ltd (ASX: FMG) share price is higher after revealing an impressive HY24 report.

Fortescue is one of the world’s largest iron ore miners, and it’s also working on becoming a major player in the new industry of green hydrogen.

HY24 result

Here are some of the main highlights from the first half of FY24:

  • Iron ore shipped of 94.5mt, down 2%
  • Average revenue increased 24% to US$108.2 per dry metric tonne (dmt)
  • Total revenue increased 21% to US$9.5 billion
  • Underlying EBITDA up by 36% to US$5.9 billion
  • Net profit after tax (NPAT) rose 41% to US$3.3 billion
  • Dividend per share up 44% to AU$1.08

Fortescue said its FY24 first-half performance was “excellent”, with a focus on keeping costs low.

The strength of its operating and financial performance allowed the business to pay 65% of its net profit as a dividend. Even at the heightened Fortescue share price, this payment amounts to a dividend yield of 5.5% when including the franking credits.

Fortescue made progress in a number of areas with its ‘green’ efforts, including the deployment of its 240 tonne battery electric haul truck and the commissioning of Australia’s first operational electric excavator.

It recently launched Fortescue Capital, to help funding with its green energy projects. The company has announced final investment decision (FID) for the Phoenix hydrogen hub, the Gladstone PEM50 project in Australia and the green iron trial commercial plant in the Pilbara (Australia).

Fortescue’s cash balance rose 11% to US$4.75 billion, while net debt sank 45% to US$569 million. It was helped by a 41% rise of operating cashflow and free cashflow growth of 68% to US$2.65 billion.

Fortescue dividend

As mentioned, the Fortescue dividend has been hiked by 44% to AU$1.08 per share. Its dividend payout ratio was 65%, just like last year.

Its policy is to pay between 50% to 80% of underlying net profit. Its earnings per share (EPS) in Australian terms increased by 44% to AU$1.66, so the dividend increased at the same rate as EPS.

Final thoughts on the Fortescue share price

The company is expecting to ship between 192mt to 197mt in FY24, including between 2mt to 4mt for Iron Bridge.

I think the company has a very promising future, but its strong rise over the last few months makes me believe it’d be better to wait for a better price. I’m not sure if the Fortescue share price is going to go under $20 or $17 this year, but as I already own shares I’m looking for a much better entry point.

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report for FREE by CLICKING HERE NOW and creating a 100% FREE Rask Account.

(Psst. By creating a free Rask account, you’ll also get access to 15+ online courses, 1,000+ podcasts, invites to events, a weekly value investing newsletter and more!)

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

At the time of publishing, Jaz owns shares of Fortescue.
Skip to content