URGENT UPDATE: Investors may need to reassess their portfolios as Fortescue Ltd (ASX: FMG) faces declining iron ore prices, impacting dividend yields. This shift prompts a critical evaluation of alternative dividend stocks on the ASX that could offer more stable returns.
With recent fluctuations in iron ore prices, Fortescue shareholders could see their passive income dwindle. The company’s decision to halt the Arizona and Gladstone green hydrogen projects further limits its options for diversifying income streams. Investors are urgently urged to consider other stocks that may provide better dividend returns.
Rio Tinto Ltd (ASX: RIO), another giant in the mining sector, presents a promising alternative. Unlike Fortescue, Rio Tinto’s diverse portfolio spans copper, lithium, and other commodities, minimizing reliance on Australian iron ore. Analysts anticipate that Rio Tinto could pay a dividend of US$4.10 per share by FY26, resulting in a grossed-up yield of 7.5%, according to broker UBS. This diversification positions Rio Tinto as a more reliable option for dividend-seeking investors.
For those prioritizing consistent passive income, GQG Partners Inc (ASX: GQG) emerges as a compelling choice. The funds management company not only pays dividends quarterly but also boasts a high dividend yield. With US$172.4 billion in funds under management as of June 30, 2025—an increase of 12.7% from December 2024—GQG’s strong performance attracts significant investor interest.
Analysts from Macquarie project that GQG could deliver an annual dividend of 16.7 cents per share in FY26, translating to a forward yield of 11.8%. This positions GQG as a potentially more lucrative option than Fortescue in the coming years.
As the market reacts to these developments, investors are advised to act swiftly. The landscape for ASX dividend stocks is shifting, and those invested in Fortescue should consider their options before the next earnings report.
Stay tuned for further updates as this situation evolves and more insights into the ASX market emerge.
