Fortescue Ltd (ASX: FMG) shares are a popular option for investors and feature in countless portfolios across Australia.
But have they been a good investment?
Let's see what a $10,000 investment at the start of the year would be worth today.
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Fortescue shares in 2023
Firstly, on the final day of 2022, Fortescue shares were changing hands for $20.51.
This means you could have picked up approximately 488 units from a $10,000 investment.
Interestingly, despite almost every major broker believing that they were overvalued at that point, they have smashed the market in 2023.
For example, at yesterday's close, the Fortescue share price was fetching $25.48. This means that they have risen 24% so far this year.
It also means that your $10,000 investment would be $12,434 today.
But the returns don't stop there. At least for now, Fortescue is one of the biggest dividend payers on the Australian share market. In 2023, the iron ore miner has paid dividends of 75 cents per share in March and $1.00 per share in September.
These fully franked dividends total $1.75 per share, which represents an 8.5% yield based on your buy price. This means dividends of $854 on top of your capital gain, bringing your investment to $13,288. Not bad!
Can its shares keep rising?
All the major brokers remain very bearish on Fortescue shares and are forecasting huge declines.
In fact, the most positive broker is Morgans, which has a hold rating and a $19.40 price target. This implies a potential downside of 24% from current levels.
Over at Goldman Sachs, it has a sell rating and lowly $18.10 price target, which suggests a potential downside of 29% for investors.
In light of this, don't be surprised if Fortescue reverses 2023's strong gains in 2024. Though, its share price has defied the broker community in the past and it's possible it could do it again.
