Equity, Bottom-up Analyst, Investics Research

Sameer Taneja

A buy-side analyst with over 15 years of experience investing in Asian markets and specializing in the mid-small cap space, emphasizing value investing in companies with good free cash flows/dividends and long-term holding horizons. 
Exempt Financial Adviser (EFA) under CrossASEAN Research Pte Ltd. It is important to note that the information provided by Investics Research is based on publicly available data and own knowledge, which has been gathered and analyzed from a variety of sources. While every effort has been made to ensure the accuracy and completeness of the information provided, it is not guaranteed to be free from errors or omissions. All forecasts and estimates are based on information that has been obtained from public sources that are considered to be reliable. The sources include but are not limited to, company announcements, exchange filings, presentations, etc. Investics does not guarantee the accuracy and completeness of the forecasts, estimates, and/or other information.

Equity, Bottom-up Analyst

Fortescue: A Big Dividend Coming Your Way!

Fortescue Metals Group: 11% Dividend Yield for FY22

Fortescue Short-Term Better Risk Reward Emerging

Investics Research

It is important to note that the information provided by Investics Research is based on publicly available data and own knowledge, which has been gathered and analyzed from a variety of sources. While every effort has been made to ensure the accuracy and completeness of the information provided, it is not guaranteed to be free from errors or omissions. All forecasts and estimates are based on information that has been obtained from public sources that are considered to be reliable. The sources include but are not limited to, company announcements, exchange filings, presentations, etc. Investics does not guarantee the accuracy and completeness of the forecasts, estimates, and/or other information.

Equity Bottom-up Research

Equity Bottom-Up

<p><a href="https://www.smartkarma.com/entities/fortescue-metals-group-ltd" target="_blank" data-smartkarma-citation="entities:41:1" rel="noopener">Fortescue Metals (FMG AU)</a> is a pure-play on iron prices. We believe that iron ore prices can sustain at or above 160-170$/ton in FY22. This implies solid cash flow generation for the company and potential dividend yield for investors. </p><p>At an iron ore price of 170$/ton, the implied free cash flow yield is 17%, and the dividend yield is 15% (with the assumption of a 70% payout ratio). We believe a hefty dividend payment is on its way for <a href="https://www.smartkarma.com/entities/fortescue-metals-group-ltd" target="_blank" data-smartkarma-citation="entities:41:1" rel="noopener">Fortescue Metals (FMG AU)</a> shareholders, and there could be a short-term upside for the share price of 20-30% into that. </p>

Fortescue Metals (FMG AU) is a pure-play on iron prices. We believe that iron ore prices can sustain at or above 160-170$/ton in FY22. This implies solid cash flow generation for the company and potential dividend yield for investors. At an iron ore price of 170$/ton, the implied free cash flow yield is 17%, and the dividend yield is 15% (with the assumption of a 70% payout ratio). We believe a hefty dividend payment is on its way for Fortescue Metals (FMG AU) shareholders, and there could be a short-term upside for the share price of 20-30% into that. 

Fortescue: Iron Ore at $200/Ton, A Scenario Analysis