While the Rio Tinto Ltd (ASX: RIO) share price has bounced around over the last few years, the dividend yield has remained attractive.

Dividends aren’t guaranteed, but the company usually tries to pay investors a sizeable payout with a rewarding dividend payout ratio.

Rio Tinto’s earnings aren’t as volatile as they used to be thanks to its diversified commodities strategy. It has significantly increased its exposure to copper, built a presence in lithium and continued its strong performance with Australian iron ore. Plus, it’s part of a massive iron ore project in Africa called Simandou.

Let’s take a look at what the dividend yield is at the current Rio Tinto share price.

Potential dividend for FY26

The business is projected to deliver a larger dividend payout for shareholders for the 2026 financial year.

Rio Tinto’s FY26 half-year result included a number of impressive growth numbers. Revenue rose 15% to US$31 billion, 28% growth of underlying operating profit (EBITDA) to US$14.8 billion, underlying earnings growth of 43% to US$6.85 billion, net profit growth of 47% to US$6.7 billion and free cash flow growth of 75% to US$3.8 billion.

All of those growth numbers allowed the business to increase its interim payout by 43% to US$2.11 per share.

Based on the dividend projection on Commsec, the business could pay a dividend yield of 3.7% excluding franking credits and 5.3% including franking credits.

That’s certainly not the largest dividend yield the business has had in the last few years.

The Rio Tinto share price has risen by 55% over the past year, which has dramatically impacted the dividend yield on offer. When the share price rises by 10%, the dividend yield is reduced by a tenth, so the huge rise for the ASX mining share isn’t helpful for prospective investors.

Is the Rio Tinto share price a buy?

The company had a very strong period in the first six months of 2026, which may make it seem appealing.

However, mining companies can be very cyclical because of how significantly resource prices can change and how much that can affect earnings due to the operating leverage, both positively and negatively.

If I were choosing when the right time is to invest in Rio Tinto shares, I wouldn’t necessarily choose a period of strength to invest. The best buying price usually appears when commodity prices are beaten down.

But, its exposure to copper and lithium is certainly paying off for the business with strengthening prices for both of those commodities. I think Rio Tinto’s earnings are on a good trajectory for the long-term.

According to Commsec, there are currently 15 ratings on the business, with seven of those being a buy and eight being a hold. While it’s been a good run for existing shareholders, I think future investors are more likely to achieve market-beating returns by waiting for a lower valuation. I’d look at other ideas today.

The post Is the Rio Tinto share price a buy for its 5% dividend yield? appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison 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.

Xero Ltd (ASX: XRO) shares are having quite the year. The ASX tech stock is down 5% to $84.26 on Wednesday, but that’s after a stunning 33% gain over the past month. Over 12 months, however, Xero shares remain down 49%.

So, what’s behind the wild ride?

Xero shares stage a dramatic rebound

Xero shares suffered a major sell-off late last year that continued into early 2026. Like much of the technology sector, the company was caught up in a broad market sell-off after investors questioned whether some tech stocks had run too far following the sector-wide rally of late 2025.

The result was painful for Xero shareholders. The shares fell as low as $61.58 in late July — around a seven-year low. Since then, however, they’ve staged a remarkable recovery.

At the time of writing, Xero shares have rebounded around 38% from that low. They’re also up 33% over the past month, although they remain down 26% year to date.

That volatility raises an obvious question: has the market become too pessimistic about Xero’s long-term growth prospects?

Xero has a huge global opportunity

Australia and New Zealand provided Xero shares with its foundation, while the UK has developed into another substantial market.

The company finished FY26 with 4.92 million customers globally.

That’s an impressive customer base for a company that began in New Zealand less than two decades ago. Yet Xero estimates its total addressable market at around 100 million small and medium-sized businesses worldwide.

The United States could therefore be crucial to Xero’s next phase of growth. The company had approximately 424,000 US customers at the end of FY26, giving it plenty of room to expand in one of management’s three most important markets.

AI could add another growth engine

Xero’s proposition has also expanded significantly. The combination of accounting, payments and payroll gives customers more reasons to stay within the Xero ecosystem.

Accounting software can also be highly sticky because businesses may find it increasingly inconvenient to move their financial information, invoicing and payroll processes elsewhere. That stickiness can support recurring revenue, retention and opportunities to increase customer spending over time.

Xero is also developing JAX, its artificial intelligence platform, to automate more financial tasks and help customers make better decisions using the data already sitting inside the platform.

There are risks linked to Xero shares, of course. Xero faces formidable competition in the US, while successfully integrating Melio, a US bill pay platform, will be crucial.

Are Xero shares a buy?

TradingView data shows five of seven analysts currently have a buy or strong buy rating on Xero shares.

The average $113.33 price target implies potential upside of around 34% from $84.56. The most bullish target sits at $149.44, suggesting potential upside of approximately 77%.

After such a dramatic rebound, Xero shares clearly aren’t without risk. But with millions of customers, a huge global addressable market and an expanding AI-powered product ecosystem, the recent volatility may be giving investors another look at the long-term opportunity.

The post What on earth’s going on with Xero shares? appeared first on The Motley Fool Australia.

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Motley Fool contributor Marc Van Dinther has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Construction and related services company Acrow Ltd (ASX: ACF) delivered record revenue for the full year, with broker Shaw and Partners convinced the company is set up for strong share price growth.

This will be good news for shareholders who have weathered a 4.4% fall in the value of their shares over the past year.

Before we get to the broker’s share price forecast, let’s have a look at the company’s recently-released full year results.

Revenue strong but profits lower

Acrow reported revenue of $336 million, up 27% on the previous year, while underlying net profit fell 20% to $27.6 million.

The company also paid a lower final dividend, reducing it from 2.95 cents per share to 1.42 cents.

In terms of the outlook for FY27, the company is expecting revenue to grow 30% and EBITDA to be 37% higher.

Towards the end of the financial year the company announced the proposed acquisitions of Preston’s SuperDeck platform system business and AGIS, with the acquisitions funded by a $70 million capital raise and a $16 million share purchase plan.

One of the main drivers for the company going forward will be the Queensland Olympics, with the company saying:

[It] presents a substantial multi-year pipeline for Acrow, with major venue projects progressing toward builder awards in Jul-Dec 2026 and construction ramp-up from Jan-Mar 2027. Acrow is well positioned across all Olympic venues, athletes’ villages and associated infrastructure, with strong alignment to its formwork, falsework, Jumpforms, screens and industrial access systems. The scale and duration of the program – from initial works through peak delivery between 2027 and 2031 offers a significant long-term growth opportunity in Queensland.  

Acrow Chief Executive Officer Steven Boland said regarding the results:

The Company has experienced a period over the past two to three years of stagnated profits, primarily due to the downturn in construction activity across the Queensland construction market. During this period, we have invested strategically to expand our national Jumpform, Screens and, most notably, our Industrial Access businesses. Today, Industrial Access generates more than $200m in revenue and has significantly enhanced the quality, stability and resilience of our earnings base. Our Construction Services division has now turned the corner with the second half revenue reaching a record level for any half yearly period, with most of the growth experienced in Q4. This momentum has continued into FY27. Looking ahead, we see significant opportunities across both our Industrial Access and Construction Services businesses.

Shares are looking cheap, broker says

In a note to clients, Shaw and Partners said that Acrow had finished the year strongly and was well-positioned heading into FY27.

The broker has a price target of $1.35 on Acrow shares, which is materially above the current share price of 97 cents.

The company is also expected to pay a dividend yield of 4% this year.

The post This ASX builder is well positioned for 40% share price growth: Broker appeared first on The Motley Fool Australia.

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Motley Fool contributor Cameron England 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.