Invested $7,000 in Rio Tinto shares 5 years ago? Here’s how much passive income you’ve earned

The Rio Tinto Ltd (ASX: RIO) share price has outperformed the S&P/ASX 200 Index (ASX: XJO) over the last five years, gaining 56% in that time.

The stock has lifted from around $72.70 in late March 2018 to trade at $114.43 as of Friday’s close.

That means a $7,000 investment in Rio Tinto shares back then would likely have seen an investor walk away with 96 of the iron ore giant’s stocks.

Today, that parcel would be worth $10,985.28. And that’s before considering the dividends paid over the same period.

For comparison, the ASX 200 has gained around 21% over the last five years.

Let’s dive into all the dividends provided to Rio Tinto shareholders during that time.

All dividends paid to those holding Rio Tinto shares since 2018

Here are all the dividends paid to those holding Rio Tinto shares since March 2018, rounded to the nearest cent:

All up, Rio Tinto investors have likely received $41.88 of passive income for each share in the iron ore producer they’ve held since this same date in 2018.

That means our figurative $7,000 investment has probably yielded around $4,020.48 in dividends over its life, leaving it with a total return on investment (ROI) of approximately 115%.

And that’s before considering the franking credits that have been attached to all the company’s offerings, potentially bringing tax benefits over the years.

Not to mention, one may have realised an even greater return if they were to have reinvested their dividends, thereby employing the power of compounding.

Rio Tinto will pay its upcoming final dividend – worth $3.26 per share – on 20 April.

Right now, the mining favourite’s stock offers a 6.2% dividend yield.

The post Invested $7,000 in Rio Tinto shares 5 years ago? Here’s how much passive income you’ve earned 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

• Dividend devotee: I’d buy Rio Tinto shares for $2,000 of monthly passive income
• 2 ASX 200 mining shares to buy with huge upside potential: analysts
• Buy these ASX dividend shares with 5%+ yields: analysts
• 3 top ASX mining shares I’d buy right now
• How I’d aim to retire rich enough to live on passive income from my ASX dividend shares

Motley Fool contributor Brooke Cooper 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/YqcgSVv