Shares in Fortescue Metals Group Limited (ASX: FMG) came into 2021 red hot after delivering a return of ~118% in 2020. Yet, the iron ore mining giant has been unable to produce a consecutive year of gains for shareholders this year.
An implosion of the steelmaking commodity's price from July has weighed on Fortescue throughout the tail-end of this year. In a matter of months, the Fortescue share price went from above $26 to below $14. Fortunately, investors have recuperated some of this ground already, with shares now fetching $19.64.
However, the all-important question is: what does this top 10 ASX-listed company have on its plate in the year ahead?
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New Year's resolution to go green-ish
A big focus of Fortescue this year has been its emergence as a clean energy player. On 11 October, the company unveiled its newest subsidiary known as Fortescue Future Industries (FFI). This new segment of the company is focused on green hydrogen, among other energy alternatives.
For those unaware, digging iron ore out of the ground at a low cost is still the company's primary objective. Although, the green initiatives outlaid by FFI appear to be attracting plenty of attention from investors. In turn, a couple of 'green' goals in 2022 will likely be under scrutiny by the market next year.
In 2022, Fortescue's FFI plans to deploy a demonstration locomotive in the company's rail operations. This follows the success of a trial ammonia fuel blend in a two-stroke locomotive earlier this year. The company's former CEO, Elizabeth Gaines stated:
Fortescue's fleet of locomotives is a critical element in decarbonising our operations and through FFI we are investing in cutting-edge technologies to power the green mining fleet of the future.
Similarly, the company is aiming to convert one of its iron ore transport vessels to run on green ammonia by the end of next year.
Dividend decision looms for Fortescue shares
Another facet of the company that will likely be closely watched by shareholders is Fortescue's dividends. Following a period of share price pressure, the company's trailing dividend yield has ballooned to 18.1%. In turn, the market is speculating over whether the mining giant will slash dividends next year.
Analysts at Macquarie are still expecting a dividend bonanza from Fortescue shares in FY22. According to the broker, shareholders could be set to enjoy a grossed-up dividend yield of 14.9% during the financial period. Not too shabby considering the industry average is around 9.5%.
