The spotlight is on Fortescue Metals Group Limited (ASX: FMG) shares as word hits the streets that Andrew 'Twiggy' Forrest is taking back the reins as chief executive officer.
This marks the first time the billionaire will be running the day-to-day operations of the S&P/ASX 200 Index (ASX: XJO) iron ore giant since stepping down as CEO in 2011.
Forrest will also remain chairman of the company, which is working on developing hydrogen-based clean energy via its offshoot, Fortescue Future Industries (FFI).
Current CEO Elizabeth Gaines is relinquishing the top job in August. Fortescue has been seeking a replacement for some five months now, but to date has come up empty.
What's the outlook for Fortescue shares with Twiggy at the helm?
With Forrest's strong focus on emissions reduction and commitment to clean energy, Macquarie analysts said his return to the top job (quoted by The Australian), "demonstrates the company's commitment to advancing its transition to a global green renewables and resources company".
Macquarie analysts will be keeping a close eye on upcoming dividends from the iron ore major. At the time of writing, Fortescue shares pay the highest dividend yield of any of the ASX 200 miners, a whopping 15.7% fully franked.
According to Macquarie, "FMG's ability to maintain its dividend payout ratio close to 80% through the transition period presents a key risk and catalyst for the stock… FMG is generating strong cash flow, with the stock trading on FY23 and FY24 free cash flow yields of 16.1% at spot prices."
How has the ASX 200 iron ore miner been tracking?
Fortescue shares have edged higher over the past week, leaving them down just under 1% in 2022.
That compares to a year-to-date loss of just under 6% posted by the ASX 200.
At the current share price, Fortescue has a market cap just north of $60 billion.
