The Fortescue dividend is hitting bank accounts today. Here's the latest

Fortescue shareholders will be a little richer today…

Key points
  • Fortescue is paying out a fully franked final dividend of $1.21 per share to eligible shareholders today
  • The company's shares have declined in the past few months following a dip in iron ore prices -- currently at US$100 a tonne
  • This had led the Fortescue share price to trade 14% lower in 2022

If you own Fortescue Metals Group Limited (ASX: FMG) shares, you might want to check your bank account today.

The day has come for the ASX 200 iron ore miner to pay out its second-biggest final dividend in the company's history.

A fully franked dividend of $1.21 per share will be landing in your account if you scooped up Fortescue shares before the ex-dividend date.

At Wednesday's market close, the mining giant's shares finished 2.14% lower to $16.46.

Let's take a look below at the details regarding the Fortescue dividend.

A couple working on a laptop laugh as they discuss their ASX share portfolio.

Image source: Getty Images

The Fortescue dividend is on its way!

The Fortescue share price has tumbled in recent times following a retreat in iron ore prices.

This also led the company to report mixed numbers across key metrics in its full-year results for 2022.

Revenue fell 22% year-on-year (YoY) to US$17,390 million despite achieving record shipments of 189 million tonnes.

The latter exceeds the top end of the guidance.

On the bottom line, Fortescue booked a net profit after tax (NPAT) of US$6,197 million, which represented a 40% decline.

Subsequently, the board made the decision to reduce its final dividend by 43% when compared to the record $2.11 paid out in H2 FY 2021.

This took the full-year dividend to $2.07 per share, representing a 42% cut on the prior corresponding year.

Based on yesterday's closing price of $16.46, Fortescue has a trailing dividend yield of 12.58%.

Fortescue share price snapshot

Iron ore prices have suffered setbacks this year due to unfavourable external factors such as China's property crisis.

This has caused significant headwinds for Fortescue.

The company's shares are down 14% in 2022 and could go further if iron ore prices continue to fall.

Fortescue is the ASX's second biggest iron ore producer with a market capitalisation of approximately $50.68 billion.

BHP Group Ltd (ASX: BHP) is in first place and takes the mantle for the most valued ASX company at a whopping $188.57 billion.

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 Scott Phillips.

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