2331 GMT - Macquarie takes a more bullish view of dividends from iron-ore miner Fortescue, starting from its 1H result this month. The bank raises its payout ratio to 70% of net profit, from 50%, meaning it now expects a dividend of A$0.52/share. "Fortescue will probably lever up to maintain high payout ratios as EPS declines and iron ore prices revert to long-term normalized levels," Macquarie says. That view prompts it to raise FY 2026-2028 payout expectations to 60%, which lifts its dividend forecasts by 20% over the period. "Under these assumptions (with falling EPS across FY 2025-2028), we expect Fortescue to yield 6.7%/4.5%/3.1%, respectively." The bank retains an underperform call on Fortescue. (david.winning@wsj.com; @dwinningWSJ)
(END) Dow Jones Newswires
February 10, 2025 18:31 ET (23:31 GMT)
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