If I'd invested $10,000 into Fortescue shares at the start of 2023, how much would I have now?

Has this miner been a good investment in 2023?

| More on:
A group of people in suits and hard hats celebrate the rising share price with champagne.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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.

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.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. 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.

More on Materials Shares

A happy businessman pointing up, inidicating a rise in share price
Materials Shares

Why are ASX lithium shares like Liontown having such a bumper session today?

Lithium shares are defying the broader market on Wednesday.

Read more »

A man has a surprised and relieved expression on his face. as he raises his hands up to his face in response to the high fluctuations in the Galileo share price today
Materials Shares

Why is the Chalice Mining share price rocketing 20% today?

Shareholders have a reason to smile at long last on Wednesday.

Read more »

A man holds his head in his hands, despairing at the bad result he's reading on his computer.
Materials Shares

Why are Core Lithium shares taking another tumble on Wednesday?

It doesn't look like mining operations will be resuming any time soon.

Read more »

Three miners looking at a tablet.
Broker Notes

Should you buy Pilbara Minerals shares today?

We canvas the experts' views on this ASX lithium stock following last week's FY24 half-yearly report.

Read more »

Two businesspeople walk together in an office, smiling as they enjoy a good business relationship.
Materials Shares

4 directors are buying the dip on this ASX lithium stock

Insiders have been busy buying shares in this lithium miner.

Read more »

A man sees some good news on his phone and gives a little cheer.
Earnings Results

Lynas share price charges higher despite 74% half-year profit decline

Weak rare earths prices have weighed heavily on the company's profits.

Read more »

A team of people giving the thumbs up sign representing APA and Wesfarmers doing a deal to study green hydrogen transport using an APA gas pipeline
Materials Shares

Why ASX 200 investors remain upbeat on Pilbara Minerals shares

Pilbara Minerals has some unique advantages over many rival ASX lithium miners.

Read more »

A woman jumps for joy with a rocket drawn on the wall behind her.
Materials Shares

This ASX lithium share is charging 13% higher on $825m financing update

This lithium developer is ending the week on a high. But why?

Read more »