Fortescue Announces AUD 0.60 Fully Franked Dividend Payable September 26

Fortescue's Dividend Announcement

Fortescue Ltd (ASX – FMG), a major player in the mining sector, has declared an ordinary dividend of AUD 0.60 per fully paid ordinary share for the financial year ending 30 June 2025. This dividend is fully franked, reflecting the company’s confidence in its profitability and commitment to returning value to shareholders.

The dividend will be paid on 26 September 2025, with an ex-dividend date set for 1 September and a record date of 2 September. These dates are critical for investors to ensure eligibility for the dividend payment.

Dividend Reinvestment Plan Details

Fortescue has confirmed the availability of a Dividend Reinvestment Plan (DRP) for this dividend, allowing shareholders to reinvest their dividends into additional shares rather than receiving cash. Notably, the DRP carries no discount on the share price, and no new shares will be issued under the plan; instead, shares will be allocated based on the average market price over a five-day trading period starting two days after the record date.

The deadline for shareholders to elect participation in the DRP is 3 September 2025 at 5 – 00 pm. Shareholders who do not make an election will receive their dividend payment in cash by default.

Implications for Investors

This fully franked dividend signals Fortescue’s strong cash flow position and ongoing profitability, reassuring investors amid fluctuating commodity markets. The 30% franking credit attached to the dividend enhances its attractiveness, particularly for Australian investors seeking tax-effective income.

While the absence of a DRP discount might limit the immediate appeal of reinvestment for some, the plan still offers a convenient way for shareholders to compound their holdings without transaction costs. The decision not to issue new shares under the DRP also suggests a focus on managing dilution carefully.

Overall, this dividend announcement reinforces Fortescue’s shareholder-friendly approach and provides a clear timeline for investors to plan their participation.