Iron ore price, page-20644

An options for yield-hungry investors

If you’re concerned about the prospect of Australia’s banks reducing or halting dividend payments, Credit Suisse believes there may be some respite for yield-hungry investors in large cap resource stocks.In particular, the investment bank believes one stock stands out from the rest.“FMG remains the standout with a 9.3 per cent yield for CY20 on spot assumptions and paying out 50 per cent of earnings,” it said.Even if iron ore prices fall as many forecasters expect, Credit Suisse believes FMG will still be able to deliver stellar investor returns.“If we assumed iron ore fell to $US70 per tonne for the remainder of CY20, FMG would still be on a 8.1 per cent yield, and if it fell to $US60 per tonne for the rest of the year it would be 6.9 per cent,” it said. “This would compare to BHP and RIO and 2.9 per cent and 2.7 per cent respectively at $US70 per tonne and 2.4 per cent and 2.2 per cent respectively at $US60 per tonne.”

little article from this afternoon. Nothing we didn't already know but good to see some recognition of FMG finally!