The portfolio of stocks I'm finishing today, named Ivy, holds 52 dividend dogs. Ivy is the fourth portfolio I've built (at a one dividend dog per week pace) since 2014. Four portfolios = IV!

Today I'm reviewing the fifth of five materials sector stocks this week striving to become the ninth of nine from that sector to join the Ivy folio. This is the last pick for Ivy!

This materials sector includes thirteen industries all related to mining, making, and delivering essential commodities. They are: agricultural inputs; aluminum; building materials; chemicals; coal; copper; industrial metals; steel; paper; silver; specialty chemicals; gold.

Today my subject is a large-cap industrial metals and minerals company named Rio Tinto PLC. Their trading ticker symbol is RTPPF.  

Rio Tinto searches for and extracts a variety of minerals worldwide, with the heaviest concentrations in North America and Australia.

Iron ore is the dominant commodity, with contributions from aluminum, copper, diamonds, energy products, 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. Shareholders in each company have equivalent economic and voting rights.

Rio Tinto Group was incorporated in 1873 and is headquartered in London, the United Kingdom.

I use three key data points to gauge dividend-paying equities or funds like Rio Tinto PLC:

(1) Price

(2) Dividends

(3) Returns

Besides those three, several other keys will finally unlock an equity or fund in which to invest or not.

Those three basic keys, however, best tell whether a company has made, is making, and will make money.

RTPPF Price

Rio's price per share closed at $49.00 yesterday. A year ago its price was $48.38. In a year its price rose $0.62 or 1.3%.

Assuming Rio's stock trades in the range of $45.00 to $60.00 this year, Rio's recent $49.00 price could rise by $4.40 and go to $53.50 by late August 2020.

RTPPF Dividends

Rio's latest declared semi-annual dividend was $2.10 payable September 19 th.

That $2.10 SA payout added to the previous SA payout equates to  $3.27 annually and yields  6.67% based on yesterday's $49.00 closing price.

RTPPF Gains?

Adding the $3.27 annual estimated dividend to my $4.50 estimate of Rio's price upside shows a $7.77 potential gross gain, per share, which will be reduced by costs to trade these shares.

Say we put a little under $1,000.00 today at the $49.00 recent stock price, we'd buy 20 Rio Tinto PLC shares.

A $10 broker fee paid half at purchase and half at sale will cost us $0.50 per share.

Subtract that $0.50 brokerage cost from the estimated $7.77 gross estimated gain leaves a net gain of $7.27 X 20 shares = ($145.40) or a 14.55% net gain on a $980.00 investment.

Therefore, Rio Tinto PLC,  whose trading ticker symbol is RTPPF now shows a possible net gain of 14.55% including a 6.67% dividend yield. It could be more, it could be less, including a 4% dividend yield. It could be more, it could be less.

The above speculation is based on past year performance. The actual results remain to be seen to learn if Rio Tinto PLC is worth your time and money.