Remember Fmg just reported an amazing Net profit after tax that...

Remember Fmg just reported an amazing Net profit after tax that could see a dividend as high as $1.35 ( at 80% pay out), that’s over 15% return including franking on an annual basis at today’s share price.

This spectacular result was based on an Iron price of $133, so I think large investors looking to park some funds at a decent dividend return would look at the recent minor decline in Iron ore price as not really reducing the value of each share below its current share price, considering it is still well above the level that generated the current 15%+ return, they probably think that even if the Iron Ore price dropped back below $100 they would still earn gross dividends of 7% or so which would still be a decent return.

I guess what I am trying to say is that it’s not always about what the daily fluctuations in iron ore or share price is, a patient long term private or institutional investor can be weighing up whether to buy and hold based on much long term fundamentals and likely cash flows, not simply trading sentiment.