The Fortescue (ASX:FMG) dividend has doubled to record levels

The company has rewarded shareholders with a massive dividend.

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The Fortescue Metals Group Ltd (ASX: FMG) dividend received a much-welcomed boost following the company's FY21 full-year results today.

No doubt, investors will be standing with open arms when the mining giant pays its final dividend next month.

Let's take a look at Fortescue's FY21 scorecard and the details of its upcoming dividend.

How did Fortescue perform in FY21?

Investors are buying up Fortescue shares, following the company's positive results for the 12 months ending 30 June 2021.

The world's fourth-largest iron ore miner recorded its second consecutive year of record performance.

Ongoing constraints in iron ore supply from traditional producers resulted in strong market conditions for Fortescue. The average revenue for iron ore rose to US$135 per dry metric tonne, a 72% increase over the period.

Coupled with the company's industry-leading cost position, C1 cost of US$13.93 wet metric tonne, this led to bumper profits.

On the bottom line, Fortescue achieved net profit after tax (NPAT) of US$10.3 billion, up 117% from FY20. This also represents a return on equity of 66%.

The Fortescue board decided to bump up its fully-franked full-year dividend to $3.58 per share, up 103%. This makes up a final dividend of $2.11, equating to $11 billion and an 80% payout of NPAT.

Based on the current Fortescue share price of $21.00 apiece, this gives the company a trailing dividend yield of a mammoth 17%.

Fortescue CEO Elizabeth Gaines commented:

Reflecting the team's outstanding performance in FY21 and our strong commitment to deliver shareholder returns, Fortescue's board was pleased to declare our largest ever final dividend…

The ability to continue delivering increased returns to our shareholders is underpinned by the successful execution of our integrated operations and marketing strategy, disciplined capital allocation, sustained focus on productivity and efficiency, as well as the strength of the iron ore market.

Fortescue dividend key dates

Fortescue provided the distribution amount and payment dates of its final dividend for the 2021 financial year. Here's a summary of the important dates Fortescue shareholders will need to know.

Ex-dividend date

The ex-dividend date will be 6 September 2021.

This is when investors must have purchased Fortescue shares.

If you sell your Fortescue holdings before the ex-dividend date, you will not receive the upcoming dividend. However, if you sell your shares on or after this date, you will still receive the dividend.

Record date

The record date for Fortescue's final dividend is 7 September 2021.

This is the date where the company checks its records to see which shareholders are on its registry. Those who bought Fortescue shares before will be eligible to receive its upcoming dividend.

Payment date

The payment date for Fortescue's dividend will be 30 September 2021.

This is when shareholders can expect to see the final dividend of $2.11 per share arrive in their accounts.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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