86c x 1.42 (Franking credits) = $1.22 On the lower end but all...

86c x 1.42 (Franking credits) = $1.22

On the lower end but all shareholders know the SP and the dividends are volatile in mining stocks or any company that is a price taker. The rewards for putting up with short to medium term SP and dividend fluctuations is the big fat oversize dividends when the IO price has a good six months.

Here is a interesting comparison, the average house in a major city in Melbourne or Sydney sits around the $1m mark. As a investment property once you take out all your fees you would be lucky to be left with $10k annual return for your troubles.

The same $1m invested into FMG at yesterdays closing price would return you $79,500 in dividends if you include two 86c dividends for the year. If you add franking credits that works out to $113PA that you would have to earn as a PAYG to bring home the same return.

Even at these levels the difference between investing in property and shares is startling, not financial advice as just pointing out the facts . Have opted out of the DRP this time around and will start topping up some time after it goes ex dividend.