The Fortescue Metals Group Limited (ASX: FMG) share price has been a very impressive performer over the last 12 months.
Since this time in 2020, the iron ore producer's shares have risen by an impressive 55%.
The good news is that despite the strong rise in the Fortescue share price, analysts still believe investors will be rewarded with incredibly generous dividends in the near term.
The Fortescue dividend
One leading broker that believes the Fortescue dividend will be enormous in the near term is Bell Potter.
According to a note out of the broker, its analysts note that the iron ore price has remained stronger than expected. As a result, it has revised its iron ore forecasts upwards and adjusted its earnings and dividend estimates accordingly.
Bell Potter said: "Our FY21 dividend increases 1.3% to A409cps, inclusive of a fully franked final dividend payment of A262cps (from A257cps), a 10.2% yield on its own. Our forecast prospective 12-month dividend payouts lift 5.7% to A460cps (from A435cps) as 1HFY22 captures our higher iron ore price forecast, for an interim payment of A198cps and forecast 17.9% fully franked yield."
However, despite this sizeable yield, Bell Potter is only recommending Fortescue as a hold with a $24.06 price target.
Is anyone more positive on the Fortescue share price?
One leading broker that is more positive on the Fortescue share price is Macquarie. Its analysts have an outperform rating and $27.00 price target on its shares at present.
The broker is forecasting fully franked dividends of $3.45 per share in FY 2021 and then $2.45 per share in FY 2022.
Based on the latest Fortescue share price of $25.42, this will mean yields of 13.6% and 9.6%, respectively, over the next two years. Macquarie believes current spot iron ore prices pose significant upside risk to earnings and dividend estimates.
