Enter your details to join our mobile app waitlist and receive early access to the Bell Direct App.
Australia’s biggest pure iron ore company Fortescue (ASX:FMG) reported stronger than expected financial results.
FMG’s attributable net profit after tax rose 66% in the 6-months to 31 December 2020 to US$4.08 billion, ahead of what the market expected, US$3.6 billion.
FMG will pay a half-year dividend of $1.47 per share. That’s a 93% jump on same time last year – and means the business is paying out 80% of its net profits.
FMG goes ex-div on 1 March 2021, so if you buy their shares before then, you’ll get the dividend.
It’s also good to know the business has net cash flow of US$4.4 billion and free cash flow of US$2.5 billion. That’s after paying $1.9 billion in expenses.
FMG shares rose 1% after the result and they’re 6% away from their all-time high of $26.40.FMG is Buy stock for Macquarie, UBS and Credit Suisse. While, Citi has FMG as a hold.