Sydney, Feb 27, 2026, 17:03 (AEDT) — After-hours
Fortescue Ltd (FMG.AX) finished Friday’s session 1.2% higher at A$21.09, breaking a brief losing streak ahead of its dividend cutoff. Shares dropped 1.4% Thursday, a reversal from the previous day’s 4.7% surge. 1
Timing’s key here. Fortescue trades ex-dividend on Monday; anyone buying from that point misses out on the interim dividend. The stock price typically reflects that, adjusting on the day.
There’s still a lot for investors to chew on from this week’s half-year results, plus the miner is sticking to its cost discipline even as it funds fresh projects. Iron ore prices haven’t budged much, though if China’s demand slips, Pilbara giants usually feel it right away.
Fortescue posted a 23% jump in first-half underlying EBITDA, reaching US$4.5 billion, and net profit after tax was up at US$1.9 billion. First-half shipments hit a record 100.2 million tonnes. The board bumped the fully franked interim dividend up to A$0.62 a share (including Australian tax credits), distributing 65% of first-half profit. Metals and Operations CEO Dino Otranto highlighted record shipments, “while keeping our people safe and costs low,” and confirmed there’s no change to fiscal 2026 guidance on shipments, costs, or capital spend. 2
The ASX filing confirmed a A$0.62 dividend, going ex-dividend on March 2. Investors on record by March 3 will see payment hit accounts March 30. Shareholders have until March 4 to opt into the dividend reinvestment plan, swapping cash for stock if they choose. 3
Visible Alpha data put the interim profit just shy of the US$1.98 billion mark analysts had in mind. Jarden pointed out the dividend beat expectations, saying shares could stay resilient thanks to a slimmer cost structure boosting both margins and free cash flow. During the earnings call, Otranto described supply negotiations with China’s state-owned iron ore buyer as “phased discussions.” The miner, he added, is leaning on AI to tighten up shipping schedules and aiming for US$2 to US$4 per tonne in cost cuts by 2030 as it shifts from diesel to renewables. 4
Iron ore prices hovered near $99 a tonne on Feb. 26, slipping just below the previous session, according to Trading Economics. The price is critical—Fortescue relies on iron ore sales to fuel both its shareholder payouts and its future expansion projects. 5
Pricing discussions have started to ripple through the rest of the sector, after China’s buyer cut back on BHP purchases during annual contract talks. Rio Tinto faces similar risks, with traders usually lumping the three major Pilbara players together whenever iron ore news breaks.
But chasing dividends isn’t without risk. Should iron ore prices fall—or if talks with China stretch out and push discounts even wider—that ex-dividend slump on Monday could easily outpace the payout. The rebound? It might not show up at all.
Monday brings the ex-dividend trade. That’s when we’ll see if the market counts the payout as locked in, or if buyers are still drawn to the miner’s cost narrative. Eyes then shift to the March 3 record date, plus any fresh details on pricing talks before the cash hits on March 30.
