Bought $9,000 of Fortescue shares in 2018? Here's how much passive income you've pocketed

Has the iron ore giant really provided a 600% return on investment over the last five years?

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Miner holding cash which represents dividends.

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Key points

  • The Fortescue share price has leapt nearly 400% over the last five years
  • Meanwhile, the iron ore giant has been paying out consistent dividends
  • Indeed, each Fortescue share has provided $9.53 of passive income since March 2018

No doubt, anyone who invested in Fortescue Metals Group Ltd (ASX: FMG) shares in March 2018 and held onto their stake would be pleased with their purchase.

The iron ore giant's share price has rocketed nearly 400% since then.

Indeed, a $9,000 investment made exactly five years ago likely would have seen a buyer walk away with 2,078 Fortescue shares, paying $4.33 apiece.

Today, that parcel would be worth a whopping $44,905.58. The Fortescue share price last traded at $21.61.

Created with Highcharts 11.4.3Fortescue PriceZoom1M3M6MYTD1Y5Y10YALL30 Mar 201831 Mar 2023Zoom ▾Jul '18Jan '19Jul '19Jan '20Jul '20Jan '21Jul '21Jan '22Jul '22Jan '232019201920202020202120212022202220232023www.fool.com.au

For comparison, the S&P/ASX 200 Index (ASX: XJO) has risen around 24% in that time.

And all that's before we consider the dividends Fortescue has paid. Let's take a look at how much passive income the materials goliath has provided since March 2018.

All dividends paid to those holding Fortescue shares since 2018

Here are the dividends Fortescue has delivered to investors over the last five years:

Fortescue dividend pay dateTypeDividend amount
March 2023Interim75 cents
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
Total: $9.53

Each Fortescue share has yielded a notable $9.53 of passive income over the last five years.

That means our figurative investment has provided a whopping $19,803.34 of dividend income over its life – marking a return on investment (ROI), including dividends and capital appreciation, of 619%.

And investors who reinvested those offerings likely experienced an even better return, thanks to the power of compounding.

Not to mention, all the dividends paid by the ASX 200 company in that time have been fully franked, meaning they might have provided tax benefits.

Right now, Fortescue shares offer a 9.07% 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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