Fortescue Metals Group Limited (ASX: FMG)'s $1.21 per share final dividend is only weeks away from landing in shareholders' accounts.
And the company has announced exciting news for those not interested in receiving the offering in cash.
Let's take a look at the latest announcement from the S&P/ASX 200 Index (ASX: XJO) mining favourite.
The Fortescue share price is trading at $17.97 at the time of writing.
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Reinvesting your Fortescue dividends? Read this
Fortescue has revealed the allocation price for its dividend reinvestment plan (DRP), allowing investors to receive their final dividend in the form of additional shares.
The DRP will be priced at $17.737 this time around.
That means shareholders who pledge the entirety of their promised dividends to the plan will receive one new share for every 14.65 shares they already hold.
Any remaining dividends unable to make up the value of a whole share will be retained by the company. They will then go towards the DRP with the next dividend.
The allocation price represents the average of the daily volume weighted average market price of all Fortescue shares traded on the ASX over the five sessions from 8 September.
The company declared a $1.21 per share, fully franked final dividend last month. That was 43% less than it offered shareholders at the end of financial year 2021.
The final dividend brought its full-year payout to $2.07, representing a payout ratio of 75% of its net profit after tax (NPAT) – which came in at approximately US$6.2 billion.
Fortescue shares traded ex-dividend on 5 September.
Of course, shareholders who opt into the DRP are still eligible for franking credits attached to the dividend. They will also dodge fees normally associated with increasing their stake in the company.
Fortescue will pay out its final dividend in two weeks' time. Shares issued under the DRP are expected to go out that same day.
