Rio Tinto PLC (NYSE:RIO) to Issue Semi-annual Dividend of $1.48

Key Points

• Rio Tinto PLC has announced a semi-annual dividend of $1.48 per share, with an impressive dividend yield of 620.0% expected to be paid on September 25th to investors of record.
• The company holds a payout ratio of 72.7%, indicating that the dividend is well-supported by its earnings, with an anticipated future payout ratio of 66.9% based on projected earnings.
• Institutional investors have been actively reshuffling their stakes, with significant increases in holdings from several firms, including a 606.1% rise from Hantz Financial Services Inc. in the second quarter.

Rio Tinto PLC (NYSE:RIO - Get Free Report) declared a semi-annual dividend on Monday, August 4th, Wall Street Journal reports. Shareholders of record on Friday, August 15th will be paid a dividend of 1.48 per share by the mining company on Thursday, September 25th. This represents a yield of 620.0%. The ex-dividend date is Friday, August 15th.

Rio Tinto has a payout ratio of 72.7% indicating that its dividend is sufficiently covered by earnings. Research analysts expect Rio Tinto to earn $6.73 per share next year, which means the company should continue to be able to cover its $4.50 annual dividend with an expected future payout ratio of 66.9%.

Rio Tinto Trading Up 0.9%

Rio Tinto stock traded up $0.52 during trading hours on Wednesday, reaching $60.22. The company had a trading volume of 1,492,090 shares, compared to its average volume of 3,377,942. The company has a debt-to-equity ratio of 0.37, a current ratio of 1.53 and a quick ratio of 1.03. The company has a 50-day moving average price of $59.46 and a 200 day moving average price of $60.30. The firm has a market cap of $75.51 billion, a price-to-earnings ratio of 9.34 and a beta of 0.64. Rio Tinto has a 12-month low of $51.67 and a 12-month high of $72.08.

Wall Street Analysts Forecast Growth

RIO has been the topic of several research analyst reports. Deutsche Bank Aktiengesellschaft cut Rio Tinto from a "buy" rating to a "hold" rating in a research note on Wednesday, July 30th. Wall Street Zen downgraded Rio Tinto from a "strong-buy" rating to a "buy" rating in a research note on Monday, April 28th. Jefferies Financial Group reaffirmed a "hold" rating on shares of Rio Tinto in a research note on Tuesday, June 3rd. Morgan Stanley reissued an "overweight" rating on shares of Rio Tinto in a research note on Monday, July 14th. Finally, Berenberg Bank restated a "hold" rating on shares of Rio Tinto in a report on Thursday, July 3rd. Four analysts have rated the stock with a hold rating, four have issued a buy rating and two have assigned a strong buy rating to the company. According to MarketBeat, Rio Tinto has a consensus rating of "Moderate Buy" and an average target price of $73.00.

Rio Tinto Company Profile

Rio Tinto Group engages in exploring, mining, and processing mineral resources worldwide. The company operates through Iron Ore, Aluminium, Copper, and Minerals Segments. The Iron Ore segment engages in the iron ore mining, and salt and gypsum production in Western Australia. The Aluminum segment is involved in bauxite mining; alumina refining; and aluminium smelting.