Rio Tinto (RIO) Declares $2.25 Dividend
Rio Tinto said on February 27, 2023 that its board of directors declared a regular semi-annual dividend of $2.25 per share ($4.50 annualized). Previously, the company paid $2.67 per share.
Shares must be purchased before the ex-div date of March 9, 2023 to qualify for the dividend. Shareholders of record as of March 10, 2023 will receive the payment on April 20, 2023.
At the current share price of $72.71 / share, the stock's dividend yield is 6.19%. Looking back five years and taking a sample every week, the average dividend yield has been 6.14%, the lowest has been 3.94%, and the highest has been 10.16%. The standard deviation of yields is 1.11 (n=237).
The current dividend yield is 0.04 standard deviations above the historical average.
Additionally, the company's dividend payout ratio is 0.48. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.
The company has not increased its dividend in the last three years.
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Analyst Price Forecast Suggests 3.79% Upside
As of March 3, 2023, the average one-year price target for Rio Tinto is $75.46. The forecasts range from a low of $46.18 to a high of $96.66. The average price target represents an increase of 3.79% from its latest reported closing price of $72.71.
The projected annual revenue for Rio Tinto is $50,610MM, a decrease of 8.90%. The projected annual non-GAAP EPS is $6.85.
What is the Fund Sentiment?
There are 1369 funds or institutions reporting positions in Rio Tinto. This is an increase of 60 owner(s) or 4.58% in the last quarter. Average portfolio weight of all funds dedicated to RIO is 0.46%, an increase of 2.70%. Total shares owned by institutions increased in the last three months by 5.25% to 288,629K shares. The put/call ratio of RIO is 0.88, indicating a bullish outlook.
What are large shareholders doing?
Wellington Management Group Llp holds 16,852K shares representing 1.04% ownership of the company. In it's prior filing, the firm reported owning 14,023K shares, representing an increase of 16.79%. The firm decreased its portfolio allocation in RIO by 99.98% over the last quarter.
VGTSX - Vanguard Total International Stock Index Fund Investor Shares holds 14,509K shares representing 0.90% ownership of the company. In it's prior filing, the firm reported owning 4,952K shares, representing an increase of 65.87%. The firm increased its portfolio allocation in RIO by 169.81% over the last quarter.
Fisher Asset Management holds 14,424K shares representing 0.89% ownership of the company. In it's prior filing, the firm reported owning 14,153K shares, representing an increase of 1.88%. The firm increased its portfolio allocation in RIO by 18.86% over the last quarter.
State Farm Mutual Automobile Insurance holds 10,932K shares representing 0.67% ownership of the company. No change in the last quarter.
CWGIX - CAPITAL WORLD GROWTH & INCOME FUND holds 9,917K shares representing 0.61% ownership of the company. In it's prior filing, the firm reported owning 13,307K shares, representing a decrease of 34.18%. The firm decreased its portfolio allocation in RIO by 13.01% over the last quarter.
Rio Tinto Background Information
(This description is provided by the company.)
Rio Tinto Group is an Anglo-Australian multinational company that is the second-largest metals and mining corporation. Although primarily focused on extraction of minerals, Rio Tinto also has significant operations in refining, particularly the refining of bauxite and iron ore.
This story originally appeared on Fintel.