Key Highlights

  • Fortescue's 46 cent fully franked final Dividend went ex on 1 September 2026.
  • The dividend was paid on 29 September.
  • FY26 dividends totalled $1.08 per share, with a 65% payout.
  • Lower sales, higher costs and China talks are relevant to the next decision.

Fortescue Ltd (ASX:FMG) is a useful case study in ex Dividend Dates on the ASX, with its 46 cent fully franked FY26 final dividend having gone ex on 1 September 2026 and been paid on 29 September. Investors needed to own shares by the close of trading on 31 August to receive it. The total for FY26 was $1.08 per share, including an Interim Dividend of 62 cents, representing a payout of 65% of underlying net profit. The next dividend decision is expected with the company's half-year result.

Timeline of the Payment

Fortescue announced its FY26 result and final dividend on 20 August 2026. The last day to buy shares and qualify was 31 August, and the ex-dividend date followed on 1 September. The Dividend reinvestment plan election deadline was 3 September, and payment was made on 29 September. Under the standard ASX timetable, the Record Date falls one Business day after the ex-dividend date.

The final dividend cost Fortescue about US$1.0 billion, which was a major contributor to the rise in net Debt from US$0.9 billion at 30 June to US$2.8 billion at 30 September. Large payments such as this can be seen directly in a company's quarterly cash flow, highlighting how the ex-dividend timetable and payment date affect the balance sheet, as well as shareholders' accounts.

The Earnings Behind the Dividend

Underlying EBITDA was US$8.6 billion in FY26, up 9%, while underlying net profit after tax rose 3% to US$3.5 billion. Statutory net profit fell 15% to US$2.9 billion, after a US$525 million non-cash Impairment on Iron Bridge and a US$73 million compensation claim expense. The dividend was based on underlying profit, which excludes these items.

Shipments reached a record 201.3 million tonnes, with 201.4 million tonnes sold. Hematite C1 unit costs were US$18.74 per wet tonne. The interim dividend was larger than the final, reflecting the variation in earnings between the two halves of the year. Iron ore prices and costs change throughout the year, and these changes feed through to each half's dividend.

What the Ex-Date Means in Practice

A share that goes ex-dividend no longer carries the right to the declared dividend, and its Market Value generally adjusts to reflect the payment, though other market factors can have a larger effect on the day. Under Australia's settlement system, a buyer must purchase shares at least one business day before the ex-date to appear on the register by the record date.

For a fully Franked Dividend such as Fortescue's, eligibility for franking credits may also depend on holding-period rules. Generally, shareholders need to hold shares at risk for a required period, excluding the purchase and sale dates, to claim credits above a small threshold. Individual tax situations vary, and shareholders should check the rules applicable to them rather than relying on general descriptions.

What Could Shape the Next Dividend

The September quarter showed lower shipments of 46.8 million tonnes and sales of 42.9 million tonnes, along with a higher hematite C1 cost of US$21.98 per wet tonne and a lower realised price of about US$80 per dry metric tonne. Those trends, if maintained, could reduce first-half earnings compared with a year earlier, and earnings are a direct input into any dividend calculated as a share of profit.

Negotiations with China Mineral Resources Group are also a key consideration. Fortescue says operations could be affected if talks are unresolved by the end of 2026. FY27 shipment guidance of 197–207 million tonnes remains in place subject to the outcome. Capital Expenditure of US$3.7–4.7 billion is also planned for its metals business, including spending on decarbonisation.

The Sector Comparison

Other miners' ex-dividend dates this year were close to Fortescue's. BHP went ex on 3 September with a 99 US cent final dividend, while Rio Tinto went ex on 13 August with a 211 US cent interim dividend. Woodside, in the energy sector, went ex on 3 September with a 57 US cent interim dividend. These dates form a cluster in late August and early September each year.

Unlike BHP and Rio Tinto, Fortescue declares its dividends in Australian cents, which means holders are not directly exposed to an exchange-rate conversion on the amount declared, though earnings are reported in US dollars. Payout ratios were also different, with Fortescue at 65% and BHP at 66%, while Rio Tinto paid 50% for its half. These differences are often relevant for comparing income streams.

Key Dates Ahead

The December quarter report early in 2027 will update shipments, costs and cash. Half-year results will follow, and they are expected to include the interim dividend announcement and an ex-dividend date. A resolution of the China Mineral Resources Group talks would be relevant to all of those items. Investors can monitor the company's announcements for confirmed dates, as the 2027 timetable has not been covered in the disclosures reviewed for this article.

Dividend reinvestment plans can also influence the cash cost of a dividend. Where shareholders take new shares rather than cash, the company retains more funds, but the number of shares on issue increases. The September quarter's cash and net debt figures show the actual cash paid after any reinvestment. Investors can use the company's reporting to see how those amounts were treated.

The next ex-dividend date will be confirmed when the interim dividend is announced with the half-year result in early 2027.

Details will follow.

Key Takeaways

Fortescue's 46 cent fully franked final dividend went ex on 1 September 2026 and was paid on 29 September. FY26 dividends totalled $1.08 per share, with a 65% payout. Lower sales, higher costs and China talks are relevant to the next decision, expected with half-year results. As with all dividends, future amounts depend on earnings and board decisions.