Understanding Rio Tinto Dividend Yield and Valuation

To understand Rio Tinto's dividend yield and valuation, you need to consider its financial performance.

Rio Tinto's dividend yield has been steadily increasing over the years, from 3.1% in 2015 to 6.2% in 2020.

The company's dividend payout ratio has also been rising, from 34% in 2015 to 64% in 2020.

This increase in dividend yield and payout ratio suggests that Rio Tinto is distributing a larger portion of its earnings to shareholders.

Rio Tinto's valuation multiples, such as price-to-earnings (P/E) and price-to-book (P/B) ratios, have been relatively stable over the years, with a P/E ratio of around 10 and a P/B ratio of around 1.5.

These multiples indicate that Rio Tinto is trading at a relatively modest valuation compared to its peers.

Rio Tinto's dividend history is a crucial aspect of its financial performance. The company has consistently paid semi-annual dividends since 2024, with a payout amount of $1.2143 per share.

The dividend yield has fluctuated over the years, with a maximum annual increase of 182.59% in 2021 and a minimum annual dividend yield of 3.89% in 2016. The average dividend yield over the past five years is 6.4%.

Here's a breakdown of Rio Tinto's dividend yield by quarter and year:

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In the world of dividend investing, it's essential to compare your investment's performance to its peers. This helps you understand how your investment stacks up against others in the same industry.

Rio Tinto Group's Dividend Yield is less than Vale S.A. (9.20%). Vale S.A. has a significantly higher Dividend Yield, which could be attractive to investors seeking higher returns.

Teck Resources Limited has a Dividend Yield of 1.78%, which is lower than Rio Tinto Group's current Dividend Yield of 6.65%. This suggests that Rio Tinto Group's Dividend Yield is more competitive in the market.

Here's a comparison of Rio Tinto Group's Dividend Yield with its peers:

It's worth noting that Rio Tinto Group's current Dividend Yield of 6.65% is greater than MP Materials Corp., Lithium Americas Corp., Piedmont Lithium Inc., Sigma Lithium Corporation, and Standard Lithium Ltd.

Rio Tinto Group has been paying out quarterly dividends to its shareholders since April 07, 2016.

As of February 21, 2025, Rio Tinto Group had a relative dividend yield of 5.5% compared to the Metals & Mining industry median of 0.4%.

Rio Tinto Group's dividend yield has averaged 6.4% per year over the past five years.

The company's dividend yield was 6.7% last year.

Here's a summary of Rio Tinto Group's dividend yield over the past year:

Rio Tinto Group's Dividend Growth Score is 22, which translates into a Dividend Growth Grade of D and is considered Weak.

This means that the company's dividend growth is not as strong as some other companies in the industry.

Rio Tinto Group's Dividend Strength Score is 71, which translates into a Dividend Strength Grade of B and is considered Strong.

This suggests that the company has a good ability to generate cash flow and pay its dividends.

Rio Group's dividend yield has experienced significant fluctuations over the years, with a maximum annual increase of 182.59% in 2021.

In 2021, the dividend yield reached a peak of 13.91%, which is the highest it has been since the data is available. This is a substantial increase from the previous year's yield of 4.92%.

The dividend yield has also seen some significant declines, with a minimum annual dividend yield of 3.89% in 2016.

Here's a breakdown of Rio Group's dividend yield by year:

The dividend yield has been influenced by various factors, including changes in the company's financial performance and market dynamics.

The return on investment for Rio Tinto Group's dividend has been impressive. The mean historical Dividend Yield over the last ten years is 7.44%.

In terms of performance, the current Dividend Yield of 6.65% has changed by -10.66% with respect to the historical average. This shows that the company's dividend yield has decreased significantly over the past decade.

The highest Dividend Yield in the past ten years was 11.16% in the December 2021 quarter, while the lowest was 0% in the December 2024 quarter. This highlights the volatility of the company's dividend yield over time.

Here's a comparison of Rio Tinto Group's Dividend Yield with the market:

As you can see, Rio Tinto Group's dividend yield is higher than the bottom 25% of dividend payers in the UK market and in the top 25% of dividend payers in the UK market. This suggests that the company's dividend is relatively attractive compared to its peers.

The average dividend yield of Rio Tinto Group is a key metric to consider when evaluating the company's dividend history and performance. It's a percentage that indicates how much of the stock's current price is paid out in dividends each year.

According to the data, the current dividend yield of Rio Tinto Group is less than its 3-year average of 7.55%. This suggests that the company's dividend yield has decreased over the past three years.

You can also look at the company's dividend yield over the past five years, which is 6.4%. This is a significant decrease from the 3-year average, indicating that the company's dividend yield has been declining over the past few years.

It's worth noting that the company's compound annual dividend per share growth rate over the last five years is -14.9%. This means that the dividend payout has actually decreased over the past five years, which could be a concern for investors.

Here's a summary of the company's average dividend yield over the past few years:

As you can see, the company's average dividend yield has been decreasing over the past few years, which could be a sign of a declining dividend payout. However, it's always a good idea to do your own research and consider multiple factors before making any investment decisions.

The metals and mining sector has seen a significant increase in profits, making it a promising industry for investors.

Given the sector's newfound profits, investors may want to consider the industry as a potential dividend bargain.

Dividend yields in the sector are attractive, with some stocks offering yields above 1%.

Rio Tinto is a notable company in the sector, having recently announced a bumper dividend payout due to strong iron ore prices.

Rio Tinto's dividend history provides valuable insights for investors. The company's dividend yield has been as high as 9.06% in 2021, and as low as 3.65% in 2016.

Rio Tinto's dividend payout percentage has also varied over the years, ranging from 0% in 2016 to 99.67% in 2021. The company's average dividend yield over the past five years is 6.4%, and its compound annual dividend per share growth rate over the last five years is -14.9%.

Here's a snapshot of Rio Tinto's dividend history over the past decade:

Rio Tinto Group is a multinational corporation with a long history. The company's Dividend Grader assigns stocks an intuitive A–F grade for three pillars.

The company's stock, RIO, is ranked based on dividend valuation, growth, and strength. Its dividend valuation grade is not specified in the article.

Rio Tinto Group's dividend growth and strength grades are also not specified. However, the company's Dividend Grader provides useful metrics for judging the attractiveness of a stock based on its dividend.

The Dividend Grader is a proprietary tool that ranks dividend-paying stocks like Rio Tinto Group.

Rio Tinto Group has a dividend history that can be useful for investors in understanding how often the company pays dividends and the reliability of the payout. Its average dividend yield over the past five years is 6.4%.

The company's compound annual dividend per share growth rate over the last five years is -14.9%. This means that the dividend has actually decreased over time. You can compare these percentages to current figures and against sector and industry peers.

Analyzing Rio Tinto Group's dividend history is a good first step for assessing payment sustainability, but it's not the only factor to consider.

Here's a breakdown of Rio Tinto Ltd.'s dividend history over the past few years:

You can see that the dividend yield has fluctuated over the years, with some years seeing a significant increase or decrease.

The Dividend Valuation Score is a percentile rank that considers both the relative dividend yield and shareholder yield. It's a crucial metric to evaluate a stock's value.

A Dividend Valuation Score of 48 translates to a Dividend Valuation Grade of C, which is considered Average. This score is not variable, meaning it must consider both relative dividend yield and shareholder yield to be valid.

Stocks with a value score from 0 to 20 are considered deep value, while those with a score between 21 and 40 are considered value.

Growth CAGR is a key financial metric that helps investors understand the potential for a company's dividend to grow over time. It's calculated by taking the average annual growth rate of the dividend payments over a specified period.

The RIO Dividend Growth CAGR is particularly interesting, with a 10-year growth rate of 7.95% and a 20-year growth rate of 9.89%. This suggests that the company has a strong track record of increasing its dividend payments over the long term.

However, it's worth noting that the dividend growth rate can be volatile, as seen in the 1-year growth rate of -44.17% in 2025e. This significant decline is likely a result of various market and economic factors affecting the company.

Despite the volatility, the 5-year growth rate of 5.62% in 2024 indicates a more stable period of dividend growth. This suggests that the company has been able to maintain a steady increase in its dividend payments over the past few years.

Here's a summary of the RIO Dividend Growth CAGR rates:

Overall, the RIO Dividend Growth CAGR rates provide valuable insights into the company's ability to increase its dividend payments over time.

In terms of dividend yield, Rio Tinto Group's 4.30% is less than Vale S.A.'s 9.20% and BHP Group Limited's 5.30%. It's also greater than MP Materials Corp.'s 0%, Lithium Americas Corp.'s 0%, Piedmont Lithium Inc.'s 0%, Sigma Lithium Corporation's 0%, and Standard Lithium Ltd.'s 0%.

The dividend yield of Rio Tinto Group is also less than Teck Resources Limited's 1.78% and Glencore plc's 2.48%. This suggests that investors in Rio Tinto Group may receive lower dividend payments compared to some of its peers.

Here's a comparison of the dividend yields of Rio Tinto Group and its peers:

Valuation is a crucial aspect of investing, and it's essential to understand the various metrics used to determine a stock's value. The relative dividend yield is a key metric, and it can be used to calculate a valuation estimate for a stock.

Stock prices tend to fluctuate between high and low valuation levels, and these relationships can be used to determine a stock's value range. This is evident in the case of Rio Tinto Group, where the relative dividend yield can be used to calculate a valuation estimate.

The Dividend Valuation Score is the percentile rank of the average of the percentile ranks of the relative dividend yield and shareholder yield. This score is not variable and must consider both metrics to be valid.

Stocks with a value score from 0 to 20 are considered deep value, those with a score between 21 and 40 are considered value, and so on. Rio Tinto Group has a Dividend Valuation Score of 48, which translates into a Dividend Valuation Grade of C and is considered Average.

A Dividend Valuation Score of 48 suggests that Rio Tinto Group is not particularly cheap or expensive relative to its historical norm. However, it's essential to consider other factors before making an investment decision.

Over the past ten years, Rio Tinto Group's mean historical Dividend Yield has been 7.44%. This average has been impacted by the current 6.65% Dividend Yield, which is a -10.66% change from the historical average.

The highest Dividend Yield in the past ten years was 11.16% in the December 2021 quarter. This is a significant increase from the current yield.

At its lowest, the Dividend Yield was 0% in the December 2024 quarter, indicating a complete absence of dividend payments during that period.

Here's a summary of Rio Tinto Ltd.'s dividend history over the past few years:

Rio Tinto's dividend yield is a crucial aspect of its stock performance. The company's dividend history shows a payout of $4.3500 in 2024, with a growth rate of 8.209%. You can expect a payout of $1.2143 every semi-annually.

The company's dividend yield is not qualified, which means it's not eligible for preferential tax treatment. The payout type is regular, and the frequency is semi-annually.

Here's a breakdown of Rio Tinto's dividend payout history:

The 3-year average dividend yield for Rio Tinto Group is not explicitly stated in the article, but we can calculate it using the 2024 and 2025 dividend yields. The 5-year average dividend yield is 6.4%.