The Rio Tinto Limited (ASX: RIO) share price has continued to deliver wealth to investors over the past five years.
Arguably, investing your money in the ASX’s safest and most reliable companies can reap some serious rewards over time.
Below, we wind the clock back and calculate how much you would have made if you’d bought $10,000 worth of Rio Tinto shares five years ago.
How much would your initial investment be worth now?
If you spent $10,000 on Rio Tinto shares exactly 5 years ago, you would have picked them up for $61.89 apiece. The purchase would deliver approximately 161 shares without reinvesting the dividends.
Looking at yesterday’s closing price, the Rio Tinto share price finished at $118.09. This means those 161 shares would be worth $19,012.49.
When looking at percentage terms, this implies an average yearly return of 13.71%. In comparison, the S&P/ASX 200 Index (ASX: XJO) has given back roughly 4.67% over the same timeframe.
As you can see from the above, investing in Rio Tinto shares would have almost doubled your initial investment.
In comparison, investing the same amount in an ASX 200 index-tracking fund would have netted you a total figure of $12,561.51 (albeit excluding any dividends).
And the Rio Tinto dividends?
Over the course of the last five years, Rio Tinto has made a total of 11 dividend payments from 2017 to 2022. Its latest dividend distribution was significantly increased on the back of favourable market conditions, notably the rise of iron ore prices.
Adding those 12 dividend payments gives us an amount of $41.06 per share. Calculating the number of shares owned against the total dividend payment gives us a figure of $6,610.66.
When putting both the initial investment gains and dividend distribution, an investor would have $25,623.15 worth of Rio Tinto shares.
Rio Tino share price snapshot
Over the past 12 months, the Rio Tinto share price has travelled 2% higher but is up almost 18% year to date.
The company’s shares hit a 52-week low of $87.28 in November before rebounding higher in the following months.
Rio Tinto presides a market capitalisation of roughly $43.84 billion and has more than 371.22 million shares on its registry.
The post If you’d bought $10,000 of Rio Tinto shares 5 years ago, here’s how much you’d have now appeared first on The Motley Fool Australia.
Should you invest $1,000 in Rio Tinto right now?
Before you consider Rio Tinto, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Rio Tinto wasn’t one of them.
The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
*Returns as of January 13th 2022
More reading
- ASX mining shares were the leaders last quarter. Here are the top performers
- The Rio Tinto share price rallied 19% in the March quarter. What’s next?
- 2 ASX 200 dividend shares analysts rate as buys
- What drove the Rio Tinto share price higher on Friday?
- 5 things to watch on the ASX 200 on Friday
Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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