The Fortescue Metals Group Ltd (ASX: FMG) share price is under pressure on Wednesday.
This follows the release of the iron ore giant's half year results.
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What happened during the first half?
As we covered here earlier in greater detail, Fortescue reported a 3.6% decline in revenue to US$7.84 billion during the first half. This was driven by softer iron ore prices, which offset the miner's record-breaking shipments.
It was a similar story for its earnings, with Fortescue's underlying earnings before interest, tax, depreciation and amortisation (EBITDA) falling 8.7% to US$4.35 billion
What about the Fortescue dividend?
Given how the Fortescue dividend has been one of the biggest on the market in recent years, investors will no doubt have been eagerly anticipating this release.
Unfortunately, the miner's dividend took the biggest hit of them all. The Fortescue board declared a fully franked interim dividend of 75 cents per share, which was down almost 13% from a year earlier.
This represents a 65% payout of net profit after tax. This is consistent with Fortescue's dividend policy to pay 50% to 80% of full year profits to shareholders.
When is payday?
The ex-dividend date for this is 27 February, with the dividend then scheduled to be paid to shareholders on 29 March.
Fortescue also advised that it will be operating its dividend reinvestment plan again, allowing eligible shareholders to elect to invest dividends in ordinary shares.
The issue price for shares under the plan will be calculated as the average of the daily volume weighted average market price for Fortescue shares during the five-day period commencing 2 March. There will be no discount to the allocation price and the plan will not be underwritten.
If you want to take part in the dividend reinvestment plan, you will need to apply before 1 March. Shares will then be allocated to shareholders on 29 March.
