Boss Energy Ltd (ASX: BOE) and Fortescue Ltd (ASX: FMG) shares have both taken a big step backwards over the past year.
On Monday afternoon, Boss Energy shares were trading for $1.47 apiece, putting the ASX uranium stock down 20.7% in 12 months.
Fortescue shares have fared a bit better. But at Monday's $16.63 a share, the S&P/ASX 200 Index (ASX: XJO) mining giant is down 12.1% in a year.
Now, while down from FY 2025, Fortescue did make two fully franked dividend payments over the last year, totalling $1.08 per share. At the recent share price, the stock trades on a 6.5% fully franked trailing dividend yield
But that passive income isn't enough to draw in RaaS Group's Joshua Baker, who issued a sell recommendation on both ASX shares this week (courtesy of The Bull).
Here's why.
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Time to exit Fortescue shares?
Commenting on Fortescue's FY 2026 results, reported on 20 August, Baker said, "The iron ore producer generated revenue of $US16.966 billion in full year 2026, up 9 per cent on the prior corresponding period."
He added:
Statutory net profit after tax of $US2.860 billion was down 15 per cent, which included a $US525 million non-cash impairment charge relating to the Iron Bridge project and a $US73 million compensation claim expense.
Summarising his sell recommendation on Fortescue shares, Baker concluded:
The final, fully franked dividend of 46 cents a share was down from 60 cents a year ago. Capital expenditure and investment guidance in full year 2027 is forecast to increase on full year 2026.
The outlook for the iron ore price isn't as appealing as other commodities. The share price has fallen from $22.99 on May 14 to trade at $17.22 on September 10.
Which brings us to…
Should I sell Boss Energy shares?
Along with his bearish take on Fortescue shares, Baker also issued a sell recommendation on Boss Energy shares.
"Boss is a multi-mine uranium producer," he said. "It owns the Honeymoon project in South Australia and has a 30 per cent stake in the Alta Mesa project in South Texas."
As for that sell recommendation, Baker said:
The Honeymoon project has presented challenges, with the company cutting production guidance in response to bad weather in the third quarter of 2026. A resource downgrade has since followed.
The company posted a net profit after tax of $2.544 million in fiscal year 2026, up from a loss of $34.168 million in the prior year. The shares have fallen from $4.62 on June 23, 2025 to trade at $1.53 on September 10, 2026. Other stocks appeal more at this stage of the cycle.
