The IO prices that underpinned those dividends was always going to be unustainable and that's why FMG was trading on a forward PE of like 5x a few years ago. It was always anticipated that IO would decline back to like $80/t and future dividends would head toward about 50c.
So it makes complete sense that the share price is remaining stable as dividends come down as that's the reality the stock was always priced for.
What the stock wasn't priced for is IO refusing to go back to $80/t but rather been at $120/t. Dividends in the future are going to be much higher than anyone anticipated and thus the renewed share price strength.
Iron ore price, page-50888
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Last
$18.29 |
Change
0.150(0.83%) |
Mkt cap ! $56.31B | |||
| Open | High | Low | Value | Volume |
| $18.14 | $18.38 | $18.02 | $164.0M | 9.002M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 2 | 10275 | $18.26 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $18.30 | 2897 | 2 |
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| Last trade - 16.10pm 13/11/2024 (20 minute delay) ? |
| FMG (ASX) Chart |