If you invested $1,000 in Fortescue shares 10 years ago, here's how much dividend income you've pocketed

Could this ASX 200 iron ore giant have returned 566% in 10 years?

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Key points

  • The Fortescue share price has rocketed 360% over the last 10 years to trade at $21.77 today
  • Meanwhile, the company has been paying out regular, fully franked dividends
  • Could that mean long-term investors can boast a total return of more than 560%?

The Fortescue Metals Group Limited (ASX: FMG) share price has likely put a smile on investors' faces over the last 10 years.

The stock has surged a whopping 360% since January 2013. Back then, a $1,000 investment in Fortescue shares would likely have seen one walk away with 211 securities, paying $4.73 apiece.

Today, that parcel would be worth $4,593.47. The Fortescue share price last traded at $21.77.   

Created with Highcharts 11.4.3Fortescue PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.com.au

For comparison, the S&P/ASX 200 Index (ASX: XJO) is currently around 51% higher than it was in January 2013.

But what about all the dividends the iron ore giant has handed out over the last decade? Let's take a look at the total return Fortescue shares have provided in that time.

How much have Fortescue shares paid in dividends in 10 years?

Here are all the dividends Fortescue shares have offered since early 2013:

Fortescue dividends' pay dateTypeDividend amount
September 2022Final$1.21
March 2022Interim86 cents
September 2021Final$2.11
March 2021Interim$1.47
October 2020Final$1
April 2020Interim76 cents
October 2019Final24 cents
June 2019Special60 cents
March 2019Interim and special19 cents and 11 cents
October 2018Final12 cents
April 2018Interim11 cents
October 2017Final25 cents
April 2017Interim20 cents
October 2016Final12 cents
April 2016Interim3 cents
October 2015Final2 cents
April 2015Interim3 cents
October 2014Final10 cents
April 2014Interim10cents
October 2013Final10 cents
Total: $9.73

As the chart above shows, each Fortescue share has provided investors with $9.73 in dividends over the last decade.

That means our figurative 211-share-strong parcel has yielded $2,053.03 of dividends in that time – more than double our shareholder's initial investment.

Thus, the stock boasts a return on investment (ROI) of nearly 566% over the last 10 years, including both dividends and share price gains.

Just imagine what might have happened if one compounded those returns by reinvesting their dividends.

Additionally, all dividends offered by the ASX 200 favourite in that time have been fully franked. That means they might have provided extra benefits at tax time.

Right now, Fortescue shares are trading with a 9.5% dividend yield.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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