FMG is the highest yielding blue-chip stock, with a very attractive yield of 17.33%. But is this sustainable and why is their dividend so high? FMG Dividend Report.
FMG Dividend Snapshot
|DPS (Trailing 12-Month)||$2.47|
|Gross DPS (Trailing 12-Month)||$3.5286|
FMG Dividend Dates 2021
|Summary||Interim Dividend||Final Dividend|
|Declaration date||18 Feb 2021 (Thu)||23 Aug 2021 (Mon)|
|Ex-div date||01 Mar 2021 (Mon)||30 Aug 2021 (Mon)|
|Pay date||24 Mar 2021 (Wed)||04 Oct 2021 (Mon)|
FMG Dividend History Graph
FMG typically announces a dividend with the release of its half-year results in February and full-year results in August as seen in their financial calendar. FMG Dividends are typically paid twice a year, in March (interim dividend) and October (final dividend).
FMG has paid biannual dividends every year since 2011. Including 2020 during the COVID-19 recessionary period. All dividends have been fully franked. They also offer a Dividend Reinvestment Plan (DRP).
FMG Yield Comparison
FMG’s current gross dividend yield is 17.33%. This is above the market average. At the time of writing FMG has the highest dividend yield within the ASX 300.
The current FMG yield of 17.33% far exceeds the Average Term Deposit rate of 0.4%
Net FMG Dividend Yields Over Time
We can see FMG’s net dividend yield has fluctuated massively, averaging around 8%. From this, we can WBC’s current net yield of 12.13% is well below its historic average.
We can see the yield spike in 2019 due to a significant increase in their dividend payment. This yield tapered off slightly as the share price increased.
FMG Dividend Payout Ratio
A companies dividend payout ratio is the ratio of the total dividend sum paid out relative to the net income of the company. It is the percentage of earnings paid to shareholders in dividends.
Based on current averages FMG’s payout ratio is 88%, which we expect to decrease in the coming years to a ratio of 68%.
In FY19 we saw FMG pay out a special dividend, that is an additional dividend outside of the interim and final dividend.The total FY19 dividends declared of A$1.14 per share represented a dividend payout ratio of 78 percent of full-year net profit after tax.
“For FY20, we have declared A$1.76 in dividends to shareholders, representing a payout ratio of 77 percent of net profit after tax consistent with our dividend policy to pay out 50 to 80 percent of net profit after tax.”
Why is FMG’s Dividend So High?
We have seen FMG’s dividend yield increase massively, this has mostly been the result of rising profits.
Alongside this, we have also seen their payout ratio increase massively. As a result, their dividend yield for investors has increased rapidly.
FMG Share Price
FMG Dividend Policy
FMG: ASX Dividend Policy is:
- FMG has a policy of paying out between 50 percent and 80 percent of net profit in dividends.
When will my FMG Dividends be Paid?
The group typically announces a dividend with the release of its half-year results in February and full-year results in August. Dividends are typically paid twice a year, in March (interim dividend) and October (final dividend). Payment dates are listed on the financial calendar.
FMG Dividend Reinvestment Plan (DRIP)
A DRIP or dividend reinvestment plan allows investors to automatically reinvest their dividends for additional shares in the company. Using this method, the investor will still receive the franking credit and will still be taxed on the cash value of their dividend.
- In Computershare it’s as simple as going ‘my profile’- ‘Reinvestment plans’ and selecting the company and electing to participate in full or partially. That is either the entire amount or a partial amount of your dividend is reinvested.
- On Link you simply click view details of the company of interest and update it in the ‘payments and tax’ section.
For more information check out our ASX DRIP VS NON-DRIP Guide
FMG Dividend History
|Distribution Type||Dividend||Franking||Ex-dividend date||Payment date|
|Result||$1.47||100%||1 Mar 2021||24 Mar 2021|
|H F Result||$1.00||100%||31 Aug 2020||2 Oct 2020|
|Result||76¢||100%||2 Mar 2020||6 Apr 2020|
|H F Result||24¢||100%||2 Sep 2019||2 Oct 2019|
|Result||60¢||100%||22 May 2019||14 Jun 2019|
|Result||30¢||100%||28 Feb 2019||22 Mar 2019|
|H F Result||12¢||100%||31 Aug 2018||2 Oct 2018|
|Result||11¢||100%||1 Mar 2018||5 Apr 2018|
|H F Result||25¢||100%||1 Sep 2017||3 Oct 2017|
|Result||20¢||100%||2 Mar 2017||6 Apr 2017|
|H F Result||12¢||100%||2 Sep 2016||4 Oct 2016|
|Result||3¢||100%||2 Mar 2016||7 Apr 2016|
|H F Result||2¢||100%||3 Sep 2015||5 Oct 2015|
|Result||3¢||100%||2 Mar 2015||7 Apr 2015|
|H F Result||10¢||100%||1 Sep 2014||3 Oct 2014|
|Interim||10¢||100%||27 Feb 2014||2 Apr 2014|
|Final||10¢||100%||2 Sep 2013||4 Oct 2013|
|Final||4¢||100%||31 Aug 2012||2 Oct 2012|
|Interim||4¢||100%||7 Mar 2012||2 Apr 2012|
|Final||4¢||100%||5 Sep 2011||30 Sep 2011|
|Interim||3¢||0%||8 Mar 2011||31 Mar 2011|