Rio Tinto Ltd. Dividend yield




   AUD/share 
 Price  100.18
 Dividend  9.07
 Earnings  9.11
 Cash-flow  15.18
 Book value  38.53
 Equity  37.80

Rio Tinto Ltd. is part of Mining business, which is part of Basic Materials industry. Rio Tinto Ltd. is a company from Australia, and his stocks are publicly traded.

Rio Tinto Ltd. paid a total dividend of 3,365 million AUD last year, for a market value of 37,167 millions (Market Cap 37,177 millions). Dividend per share of Rio Tinto Ltd. is 9.07 AUD, and his stock market price 100.18 AUD.

According to the chart below, where dividend yield is displayed, Rio Tinto Ltd. has a dividend yield of 9.05%, which is higher than the amount offered by both the market average and companies from Australia. It is also bigger than average of Basic Materials industry. This high dividend yield might be a sign to worry about the future of the company so deeper analysis is needed.

In addition, you should compare Rio Tinto Ltd. dividend yield with other Mining companies or firms from Australia.

Dividend yield of Rio Tinto Ltd.

Rio Tinto Ltd. Dividend Payout

About the ability of Rio Tinto Ltd. to maintain his current dividend of AUD 9.07 per share, an amount that accounts for 9.05%, we should study its payout ratio both on earnings and on cash-flows (see chart below). Rio Tinto Ltd. payout on ernings is currently 99.56%, which is higher than the market average, and companies of Basic Materials industry, which are 39.27% and 51.13% respectively. Both figures show that Rio Tinto Ltd. can have problems to keep with his present dividend yield.

The payout on earnings should be complemented with the payout on cash flow since it is this last amount the one which can be distributed to shareholders. Cash flow per share of Rio Tinto Ltd. is AUD 15.18 per share, which is higher than the dividend per share paid by the company of AUD 9.07, so the company generates enough cash to maintain his dividend in the future.

The following figure shows payout ratios over earnings and cashflow of Rio Tinto Ltd., compared againt world market average, Australia companies, Basic Materials industry and Mining sector companies.

Rio Tinto Ltd. payout

Rio Tinto Ltd. Dividend History

Year Yield  AUD  Paypout  Shares* 
Present9.05%9.0799.56%371
20204.97%5.6676.08%371
20194.68%4.7039.80%371
20185.09%3.9951.35%371
20173.97%3.0180.70%412
20163.65%2.110.00%424
20156.49%2.9875.25%424

*In millions

Rio Tinto Ltd. Stock performance

Finally, last moth Rio Tinto Ltd. showed a return of -10.60% compared to a worldwide -1.33% average, and a -2.32% of Basic Materials firms. Over the last year, the company obtained a 9.30% versus a worldwide performance of a 31.58%. More detailed information can be seen in the following graph for Australia and Mining firms.

Rio Tinto Ltd. stock and market return