Wednesday, April 5, 2023 1:02 PM EST
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Rio Tinto PLC bears the ticker symbol RIO, and this is my first mention of RIO for this new Viking Portfolio. However, I have mentioned RIO in previous Underdog Dividend reports.
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Rio Tinto is a global diversified miner. Iron ore is the dominant commodity, with significantly lesser contributions from copper, aluminium, diamonds, gold, and industrial minerals.
The 1995 merger of RTZ and CRA, via a dual-listed structure, created the present-day company. The two operate as a single business entity, with shareholders in each company having equivalent economic and voting rights.
Major assets include Pilbara iron ore operations, a 30% stake in the Escondida copper mine, 34%-ownership of the Oyu Tolgoi copper mine in Mongolia, the Weipa and Gove bauxite mines in Australia, and six hydro-powered aluminium smelters in Canada.
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The company also owns and operates open pit and underground mines, refineries, smelters, and concentrator facilities, as well as power stations, research, and service facilities.
Rio Tinto Group was founded in 1873 and is headquartered in London, United Kingdom.
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Three key data points gauge RIO or any dividend-paying firm. They are:
(1) Price
(2) Dividends
(3) Returns
Those three basic keys best tell whether any company has made, is making, and will make money.
RIO Price
RIO’s price per share was $66.94 at Tuesday’s market close. In the past year, RIO’s share price fell $15.74 or about 19%.
If RIO stock trades in the range of $50.00 to $80.00 this next year, its recent $66.94 share price might rise to $75.00 by next year. My upside estimate of $8.06 is about 40% under the median of estimates from 4 analysts tracking RIO for brokerages.
RIO Dividend
RIO’s most recent semi-annual dividend of $2.25 casts an annual payout of $4.85 for a yield of 7.25%.
RIO Returns
Taking the $4.85 annual estimated
RIO dividend and adding the $8.06estimated price upside, reveals a $12.91 potential gross gain per share.
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At Tuesday’s $66.94 closing price, a little over $1000 would buy 15 shares.
A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.67 per share.
Subtract that maybe $0.67 brokerage cost from my estimated $12.91 gross price upside estimate makes a net amount of $12.24 X 15 shares = $183.60 or an 18.25% net amount.
In the next year, our $1K investment in shares of RIO might generate $72.50 in cash dividends. Furthermore, a single share of RIO at Friday’s $66.94 price is $5.56 less than the $72.50 estimated annual dividend income from $1000.00 invested.
So, by my dogcatcher ideal, this is a time to consider Rio Tinto PLC shares, based on their dividends for 2023. The dividend from $1k invested is $5.56 greater than the single share price. Consider yourself alerted
All of the estimates above are speculation based on the past history of investment in shares of Rio Tinto PLC . Only time and money invested in this stock will determine its future market value.
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Disclaimer This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a ...
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Disclaimer This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a solicitation, recommendation or endorsement to buy or sell any security. Prices and returns on equities in this article except as noted are listed without consideration of fees, commissions, taxes, penalties, or interest payable due to purchasing, holding, or selling same.
Disclosure: This article was compiled by Rydlun & Co., LLC from data derived from www.ycharts. com; www.finance.yahoo.com; analyst median target price by YCharts.
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