The Motley Fool

Where I would reinvest my Fortescue dividends

Later today the shareholders of Fortescue Metals Group Limited (ASX: FMG) will receive the iron ore producer’s latest dividend.

It is paying shareholders a fully franked 24 cents per share dividend today, bringing the total dividends paid this year to a massive $1.14 per share.

This equates to a very generous 13% dividend yield and is the result of the company returning significant funds to shareholders following a sharp rise in iron ore prices this year.

If you’re planning to reinvest these funds back into the share market, here’s where I would invest them:

BHP Group Ltd (ASX: BHP)

Investors looking for more options in the resources sector might want to consider buying this mining giant’s shares. BHP continues to be my favourite option in the sector due to the quality and diversity of its operations, its strong free cash flow generation, and growth opportunities. Another positive is that management has a similar penchant for returning funds to shareholders. So much so, I estimate that its shares currently provide a fully franked forward ~6% dividend yield.

National Storage REIT (ASX: NSR)

If you’re looking for more dividends then I would consider National Storage. It is one of the ANZ region’s largest self-storage providers with a total network of 168 centres providing tailored storage solutions to over 60,000 residential and commercial customers. Management continues to see plenty of room for growth in the future, which I expect to support further distribution increases in the coming years. At present the company’s shares provide a 5.3% trailing distribution yield.

WiseTech Global Ltd (ASX: WTC)

Finally, if you’re interested in growth shares then take a look at this rapidly growing logistics solutions company. I believe it is a great option due to the strong long-term growth potential of its CargoWise One platform. CargoWise One is a single-platform software solution which provides an enterprise-class management system for logistics companies across 150+ countries. The company counts 43 out of the top 50 global third-party logistics providers and all 25 of the top global freight forwarders as customers. I believe this has made the platform an integral part of the global supply chain.

NEW. The Motley Fool AU Releases Five Cheap and Good Stocks to Buy for 2020 and beyond!

Our experts here at The Motley Fool Australia have just released a fantastic report, detailing 5 dirt cheap shares that you can buy in 2020.

One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…

Another is a diversified conglomerate trading over 40% off its high, all while offering a fully franked dividend yield over 3%...

Plus 3 more cheap bets that could position you to profit over the next 12 months!

See for yourself now. Simply click here or the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.


James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of WiseTech Global. The Motley Fool Australia has recommended National Storage REIT. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.