The Fortescue Metals Group Limited ASX: FMG share price has been an incredible performer in 2019.
Since the start of the year the iron ore producer's shares have rallied a whopping 120% higher.
This makes it the second-best performer on the ASX 200 ahead of Afterpay Touch Group Ltd (ASX: APT) with its 109% gain and behind Nearmap Ltd (ASX: NEA) with its 140% gain.
Why is the Fortescue share price up 120% in 2019?
Investors have been fighting to get hold of Fortescue's shares this year due to a sharp increase in iron ore prices caused by supply concerns.
Disruptions in iron ore supply in both Brazil and Australia and robust demand for steel manufacturers led to Chinese iron ore futures reaching record highs last week.
In London the price of the base metal has been unstoppable as well. According to Metal Bulletin, the spot price for the benchmark 62% fines rose 2.5% on Friday to close the week at US$101.70 a tonne.
This was the first time the benchmark fines have climbed above the US$100 a tonne level for five years.
It was a similarly positive story for lower and higher grade ores. The price of 58% fines rose 1.8% to a multi-year high of US$85.12 a tonne and the price of 65% fines climbed 1.9% to a multi-year high of US$115.60 a tonne.
Investors have also been buying Fortescue's shares due to its generous dividends. Last week the company surprised the market by announcing a 60 cents per share fully franked dividend.
This brought Fortescue's year to date dividends to a total of 90 cents per share, which equates to a yield of 9.8% based on Monday's close price.
The company's latest dividend alone provides a fully franked 6.5% yield and it's not too late to get hold of it. Fortescue's shares will trade ex-dividend for this dividend on Wednesday, meaning you have until the close of play on Tuesday to buy shares if you want to be paid it on June 14.
