Hanging out for your Rio Tinto dividend? Here’s the latest

Of the dividends that are coming ASX investors’ way this month, the Rio Tinto Limited (ASX: RIO) dividend must surely be among the most anticipated.

Like its contemporaries in the mining space, the last few years have seen record dividends from Rio Tinto. That’s thanks largely to historically high commodity prices.

Rio announced its half-year earnings back in July. Back then, investors might have initially experienced disappointment with what the company reported in terms of revenue and earnings.

But they might also have been disappointed that Rio did not declare a special dividend to accompany its interim payment. For the past few years, Rio has included a special dividend payment alongside its regular dividends. But not this time.

Saying that, it might be hard to dismiss the fact that the US$2.76 per share fully-franked interim dividend will be the second-highest ever doled out by Rio Tinto.

Unfortunately for would-be Rio investors, the company’s shares have already traded ex-dividend for this upcoming payment. The ex-dividend date was way back on 11 August.

So anyone who has bought Rio Tinto shares since will be ineligible for this payment. But eligible investors will only see the cash (or additional shares, if the dividend reinvestment plan is preferred) next week on 22 August.

The ASX will be closed on that day due to the public holiday commemorating the late Queen Elizabeth II. But Rio’s dividend is still scheduled to be paid out then.

Rio Tinto’s next dividend finally revealed

But today, investors got some happy news to keep the home fires burning until next week’s payday. Rio has announced the final amount that ASX investors are set to receive.

The miner normally declared its dividend payments in US dollars when first announced. It then announces what its investors will receive in the local currency closer to the date, based on prevailing exchange rates.

So we already know that next week’s dividend would be worth US$2.76 per share. But today, we found out that ASX investors can expect a payment of $3.837 per share in our currency.

Rio Tinto shares will have a trailing dividend yield of 10.39% on the current pricing when the dividend is paid. That’s 11.32% if we include the value of the special dividend from earlier this year as well.

The post Hanging out for your Rio Tinto dividend? Here’s the latest appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Morgan Stanley just boosted its outlook for aluminium. Here’s which ASX shares have exposure
• How big will the Rio Tinto dividend be in 2023?
• ASX 200 mining shares stage significant rebound in afternoon trading
• Rio Tinto share price slides despite new $3bn iron ore project
• Rio Tinto share price shrugs off latest blow to Turquoise Hill deal

Motley Fool contributor Sebastian Bowen 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.

from The Motley Fool Australia https://ift.tt/ajJ4Bdb