from ********* Shareholders in Fortescue Metals Group (including...

from *********
Shareholders in Fortescue Metals Group (including the biggest, Chairman Andrew Twiggy Forrest) can look forward to a sharp increase in dividend when the company reports its 2016-17 profit a week next Monday.
After Rio Tinto raised its interim dividends and added $US1 billion to the existing $US500 million buyback, Fortescue is expected to follow suit after a strong hint yesterday from CEO, Nev Power.
He said yesterday that with the company enjoying strong margins on the back of improved iron ore prices, it needs to balance returns for debt holders and shareholders.
"We flagged at the time of the interim dividend that we would be reviewing the payout ratio at the time of final dividend. The board will consider this in two weeks," he said at the Diggers and Dealers conference in Kalgoorlie, Western Australia.
Fortescue currently has a payout ratio of 30% to 40% of net profit, and declared a sharply higher interim dividend of 20 cents a share in February, representing 38% of profit.
It paid a total for 2015-16 of 15 cents a share with a final of 12 cents - analysts expect a multiple of that figure to be the final for the year to June 30.

So 50% payout ratio on the above numbers would be about 43c div for the year or 23c for the second half. I'll stick with my 25c estimate (already submitted). That still allows for a significant share buyback.