Key Highlights

  • The fully franked final dividend is A$0.46, taking FY26 dividends to A$1.08 per share.
  • Total dividends equal about A$3.3 billion and a 65% payout of underlying NPAT.
  • Underlying NPAT was US$3.5 billion, and free cash flow was US$3.2 billion.
  • The approximate yield is near 7.2%, or about 10.3% grossed up, with a reinvestment plan.

Fortescue Ltd (ASX:FMG) is one of the world's largest iron ore producers, with mines, rail and port operations in the Pilbara region of Western Australia. In FY26 it shipped a record 201.3 million tonnes of iron ore at a hematite C1 cost of US$18.74 per wet tonne, and it also owns the Iron Bridge magnetite project.

Beyond iron ore, Fortescue is investing in renewable energy, including a Pilbara Green Grid of 2.4 GW of solar and wind with battery storage, and in green technology. Its growth portfolio spans critical minerals and copper exploration, with drilling in Gabon, Peru, Argentina, Kazakhstan, Canada and Australia. China is its largest market, and its sales are exposed to the iron ore price and to negotiations with China Mineral Resources Group. Earnings are reported in US dollars, while dividends are paid in Australian dollars and fully franked.

Fortescue Ltd (ASX:FMG) released its FY26 results with fully franked dividends of A$1.08 per share, supported by underlying net profit after tax of US$3.5 billion.

The Dividend Picture

FMG has an approximate yield of about 7.2% at a price near $15.02, franking of 100%, a grossed-up yield of about 10.3% and a reinvestment plan available. The board declared a fully franked final dividend of A$0.46 per share with an ex-dividend date of 1 September 2026 and payment on 29 September 2026. Total FY26 dividends of A$1.08 per share equate to A$3.3 billion and a 65% payout of underlying NPAT. Underlying earnings per share were US$1.13, or A$1.66, so A$1.08 is about 65% of that.

Understanding the Dividend Data for Fortescue

At a share price of approximately $15.02, the approximate yield is 7.2%. Franking is 100%, which lifts the grossed-up yield to about 10.3% from the cash yield of about 7.2%. The grossed-up figure adds the value of franking credits for holders who can use them, and it is not a cash payment. A distribution reinvestment plan is available, which allows holders to take additional securities in place of cash. As an illustration of the arithmetic only, a holding worth $10,000 at that price and yield would correspond to roughly $719 of cash distributions over a year before tax, calculated from the stated percentage. Dividends follow earnings and a payout policy, so the amount can change between periods. Yields of this kind depend on the share price on the day and on which payments are counted, so they move as the share price changes and are not a forecast.

FY26 Results

Underlying EBITDA was US$8.6 billion, up 9%, with a margin of 51%. Underlying NPAT was US$3.5 billion, up 3%, while statutory NPAT was US$2.9 billion after a US$525 million non-cash impairment on Iron Bridge and a US$73 million compensation claim expense. Net operating cash flow was US$6.8 billion, and free cash flow was US$3.2 billion after US$3.6 billion of capital expenditure.

Operations and Balance Sheet

Iron ore shipments were a record 201.3 million tonnes, and Hematite C1 cost was US$18.74 per wet tonne. Cash was US$5.1 billion and net debt US$0.9 billion, with gross debt to EBITDA of 0.7 times. Fortescue syndicated a RMB 14.2 billion term loan. The Green Grid involves 2.4 GW of renewable energy, including 1.5 GW of solar and 900 MW of wind, firmed by 4 to 5 GWh of batteries.

Growth, Technology and China

Fortescue says artificial intelligence is being put to work in drilling, processing, rail and haulage, and in optimising energy generation, storage and use across its Green Grid. It reports that its ongoing negotiations with China Mineral Resources Group continue, alongside a widening relationship with China in renewable energy and green technology. Exploration teams have completed more than 230,000 metres of drilling for the Belinga project in Gabon while studies and approvals progress with the government of Gabon, and the group expanded its copper portfolio with the Caariaco project in Peru, adding to drilling programs in Argentina, Kazakhstan, Canada and Australia.

Operations and Capital Allocation

Fortescue shipped a record 201.3 million tonnes at a hematite C1 cost of US$18.74 per wet tonne, and a new life-of-mine plan includes the Blacksmith Project. Capital expenditure of US$3.6 billion supported free cash flow of US$3.2 billion, so the A$3.3 billion dividend was set against that cash generation. The Nabrawind self-erecting technology is intended to make wind turbine construction faster and cheaper, and testing of Fortescue Zero power systems is being finalised before Liebherr T 264 trucks join operations later this year. The company's first mandatory climate-related financial statement is in its FY26 annual report.

How the Payout Measure Works

The measure that matters for this dividend is underlying net profit after tax. Fortescue sets dividends as a share of underlying NPAT, which excludes items such as the US$525 million impairment on Iron Bridge. The 65% payout of US$3.5 billion underlying NPAT equals about A$3.3 billion. Investors comparing the figure with a yield should remember that the yield is calculated on a price, while the payout compares the dividend with the company's own earnings measure, so the two answer different questions. A high payout can leave little retained cash, while a low payout can leave room for growth or debt reduction, and the right balance depends on the business.

Key Dates and Timing

The ex-dividend date for the final dividend is 1 September 2026, and it is paid on 29 September 2026. Dividend and distribution amounts can change from period to period, and the announcement is the source for amounts and dates. Anyone relying on a date should confirm it against the company's notice, because record dates and payment dates vary by security.