POWER!!!! Fortescue Future Industries, page-4388

"Tony, with all due respect mate, your terminology "a good dividend now" is a gross understatement, it's comppararably huge!....12.01%(+frankings), compared to BHP's measly 5.92%. The carbon addicts must be gnashing their teeth!"

Of all the Kool-Aid induced delusions concerning this stock, the "12% DY, folks!" one is the most egregiously flawed.

Seriously, do you really believe, with:

1.) the iron price at a three-year low, and down almost 25% on the average of the previous 12-months, and

2.) significant calls on capital facing the company,

....that FMG's dividend will be maintained at the $2.08 cents per share that was declared in respect of the last two financial results, which equates to the "+12.01%" DY which you envisage?


"Obviously those comparative figures are a manifestation of our plunging SP."

Nope; wrong take, I'm afraid.

Instead, the thing which is obvious is that those comparative figures are a manifestation of plunging share price - quite reasonably - anticipating a large reduction in FMG's dividend.

You really should stop perpetuating that 12% DY myth if you want to be taken to avoid being taken as little more than a mere paid shill for the stock.

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