Here’s the Rio Tinto dividend forecast through to 2026

One of the most popular options out there for income investors is the Rio Tinto Limited (ASX: RIO) dividend.

And this for good reason. The mining giant has a tendency to share a significant amount of its profits with its shareholders. So, when times are good for this mining giant, big dividends are often declared.

With that in mind, let’s take a look to see what is expected from the Rio Tinto dividend in the coming years.

Where is the Rio Tinto dividend heading?

According to a note out of Goldman Sachs, its analysts are expecting the big dividend payments to continue in the near term.

In FY 2022, the broker is forecasting a fully franked US$4.90 (A$7.09) per share dividend. Based on the current Rio Tinto share price of $98.19, this will mean a yield of 7.2%.

It then expects this dividend to increase to US$5.12 (A$7.43) per share in FY 2023, giving investors a 7.6% yield.

Goldman is forecasting an increase to US$5.48 (A$7.95) per share in FY 2024, which would mean a fully franked 8.1% yield.

A slight reduction is forecast in FY 2025 to US$5.40 (A$7.83) per share. Nevertheless, this still means a very attractive 8% dividend yield.

Finally, its analysts are anticipating a reduction in the Rio Tinto dividend to US$3.90 (A$5.65) per share in FY 2026. This represents a 5.8% dividend yield at today’s prices.

Are its shares a buy?

As well as juicy dividend yields, Goldman Sachs sees plenty of upside for the Rio Tinto share price.

It currently has a buy rating and $121.50 price target on the company’s shares. This implies potential upside of 24% from current levels.

The post Here’s the Rio Tinto dividend forecast through to 2026 appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro 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 Scott Phillips.

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