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After a wobbly couple of weeks, the AVZ Minerals Ltd (ASX: AVZ) share price is back on form on Wednesday.

In morning trade, the lithium developer’s shares are up 10% to $1.13.

While this means the AVZ share price is still trading well short of its recent record high of $1.37, it remains up over 500% since this time last year.

Why is the AVZ share price racing higher?

The catalyst for the rise in the AVZ share price on Wednesday has been the release of an update on the company’s Manono Lithium and Tin Project in the Democratic Republic of the Congo.

According to the release, the company has received a positive technical opinion from the Department of Mines, which paves the way for an imminent decision on the award of a mining licence for its flagship project.

The release notes that to receive a mining licence the operation needs to satisfy four key elements. These are environmental approval, proof of financial capability, favourable cadastral opinion, and favourable technical opinion.

As the Manono Project has now received favourable outcomes on all four points, management appears confident that the award of a mining licence could be imminent.

Final hurdle is overcome

AVZ’s Managing Director, Nigel Ferguson, was pleased with the news and notes that this was the final hurdle the company needed to overcome for the mining licence.

He said: “The receipt of the favourable technical opinion for the DFS is the final procedural hurdle ahead of the Minister of Mines pending decision on the award of the Mining Licence which we now eagerly await. This will also be the catalyst to advance the Collaboration Development Agreement which will underpin the partnership between the Government and the developers of the Manono Project.”

The post AVZ Minerals share price shoots 10% higher on Manono Lithium project update appeared first on The Motley Fool Australia.

More reading

• 3 ASX mining shares skyrocketing on major new discoveries
• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• Here are the 3 most heavily traded ASX 200 shares on Monday
• These were the worst performers on the ASX 200 last week
• Here are the 3 most heavily traded ASX 200 shares on Friday

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 Bruce Jackson.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Investors have been getting more excited about Amazon (NASDAQ: AMZN) in the past month since the e-commerce and cloud-computing juggernaut announced that it will perform a 20-for-1 stock split on June 6. 

Stock splits often intrigue investors because they result in a lower price per share, making it technically easier for a broader swath of individuals to buy the stock. But such events are less important these days as many brokerage accounts allow investors to buy fractional shares.

More importantly, while shareholders will wind up with more shares than they had before, the overall value of the company (and prior investors’ stakes) will remain essentially the same.

Having said all of that, there are a couple of excellent reasons why you may want to buy Amazon stock this month that don’t have anything to do with its stock-splitting plans.

Amazon’s lucrative lead in the cloud 

Most people still think of Amazon first and foremost as an e-commerce giant, but the company’s cloud computing business Amazon Web Services (AWS) is where it makes its real money.

In 2021, an impressive 74% of its operating income came from AWS even though it generated just 13% of the company’s total revenue. The cloud business isn’t just immensely profitable for Amazon, it’s also one of the company’s fastest-growing segments with sales increasing 40% year over year in the fourth quarter to $17.8 billion. 

All of that is impressive enough, but the company’s opportunity looks even better when you consider that AWS currently holds 33% of the cloud infrastructure market, amounting to $191.7 billion. Microsoft is the runner-up with a market share of 22%, while Alphabet lags them both with 9%.  

In short, AWS is growing quickly, is very profitable, and is the dominant player in cloud computing — which all points to the company’s long-term potential to continue benefiting from this market. 

Advertising is the icing on the revenue cake

Amazon disclosed its advertising revenue as a separate metric for the first time when it reported its fourth-quarter results back in February — and investors really liked what they saw. 

The company’s ad sales totaled $9.7 billion in the quarter, up 32% from 2020. To put that in perspective, Amazon’s advertising business is officially bigger than YouTube’s ad segment, which totaled $8.6 billion over the same period. 

Prior to the most recent report, analysts and investors had to make do estimating what the company’s ad sales were, but now they’ve got a clear picture of a healthy business that’s generating tons of revenue and growing quickly. According to eMarketer, Amazon’s advertising business will continue cutting into the market shares of Alphabet and Meta Platforms in the coming years, and account for nearly 15% of the digital ad market by 2023 — up from less than 12% last year. 

Keep this in mind

While some investors may be getting excited about Amazon right now because of the upcoming stock split, its strong positions in advertising and cloud computing are far better reasons to consider buying the stock this month. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Is Amazon stock a buy this month? appeared first on The Motley Fool Australia.

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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Chris Neiger has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Alphabet (A shares), Amazon, Meta Platforms, Inc., and Microsoft. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Alphabet (C shares). The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), Amazon, and Meta Platforms, Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Exchange-traded funds (ETFs) could be a smart place to look for opportunities in April 2022.

Some ETFs may be capable of providing a mixture of growth and diversification thanks to tailwinds.

There has been a lot of volatility in the last few months. Here are two ETFs to consider:

Betashares Global Cybersecurity ETF (ASX: HACK)

As the name suggests, this ETF is about the global cybersecurity sector.

One of the businesses owned in this ETF’s portfolio, Palo Alto, commented last year about ‘ransomware’. Its 2021 update said that “the average ransomware payment climbed 82% since 2020 to a record $570,000 in the first half of 2021, as cybercriminals employed increasingly aggressive tactics to coerce organizations into paying larger ransoms”.

That increase came after a 171% increase in the previous year to $312,000.

Palo Alto also said:

While we predict that ransoms will continue their upward trajectory, we do expect to see some gangs continue to focus on the low end of the market, regularly targeting small businesses that lack resources to invest heavily in cybersecurity.

Because of that, it’s expected that spending on cybersecurity will increase to US$248.26 billion in 2023, according to BetaShares sources.

There are a total of 41 positions in the portfolio. The largest are: Crowdstrike, Palo Alto, Cloudflare, Cisco Systems, Zscaler, Akamai Technologies, Mandiant, Splunk, Booz Allen Hamilton, and Leidos.

The Betashares Global Cybersecurity ETF has an annual management fee of 0.67%.

Past performance is not a reliable indicator of future performance, but the HACK ETF delivered an average return per annum of 20.5% over the five years to 28 February 2022.

VanEck Video Gaming and Esports ETF (ASX: ESPO)

This is another ETF with a portfolio of international holdings that are leaders in their industry.

Investors get exposure to the video gaming and e-sports sector with this investment.

Readers may know some of the top ten businesses in this portfolio (out of a total of 25): Nvidia, Tencent, Advanced Micro Devices, Activision Blizzard, Nintendo, Netease, Sea, Unity Software, Electronic Arts, and Nexon.

ESPO has a relatively low weighting to the US of 44.5% for an internationally-focused ETF. Japan and China have weightings of 21.1% and 16.5%, respectively. Singapore, South Korea, Sweden, France, Taiwan, and Poland are the other locations that have an allocation.

VanEck says that the video game business is now larger than both the movie and music industries combined, making it a significant industry in entertainment.

E-sports is reportedly considered the world’s fastest-growing sport. Revenue in the e-sports industry has increased by an average of 28% per year since 2015. It opens up new revenue avenues such as game publisher fees, media rights, merchandise, ticket sales, and advertising.

Outside of e-sports, the wider video gaming industry has seen 12% average annual growth since 2015.

VanEck said:

E-sports and online video games are a long-term disruptive force in the traditional media, entertainment and technology industries.

The post Are these 2 leading ETFs good buys in April 2022? appeared first on The Motley Fool Australia.

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• 2 popular ETFs for investors to buy in April
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• 3 very exciting ETFs for ASX investors this month
• Crypto and cybersecurity: 2 exciting ETFs for ASX investors
• Why this leading ASX ETF is in the spotlight this week

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. owns and has recommended BETA CYBER ETF UNITS. The Motley Fool Australia owns and has recommended BETA CYBER ETF UNITS. The Motley Fool Australia has recommended VanEck Vectors ETF Trust – VanEck Vectors Video Gaming and eSports ETF. 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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If you’re in the market for some dividend shares, then look no further. Listed below are two highly rated dividend shares that brokers have recently rated as buys.

Here’s what you need to know about them:

Baby Bunting Group Ltd (ASX: BBN)

The first ASX dividend share to consider is Baby Bunting. It is a baby products retailer with a growing presence online and through its expanding store footprint.

The team at Citi is positive on Baby Bunting. It currently has a buy rating and $6.22 price target on its shares.

Citi commented: “We see Baby Bunting well placed to outperform the broader small cap retail sector this year given the non-discretionary nature of its category. While the FY22 PE multiple of 24x (or 29x when adjusted for transformation costs) is not cheap, we forecast a FY21 to FY24 EPS CAGR of 17%, and see growth being driven by i) rollout, ii) ramp up of new stores, iii) margin expansion and iv) penetrating existing categories with low presence. Further, the stocks growth prospects are in some respects less risky than other high multiple retailers who are relying more on new markets and acquisitions.”

As for dividends, the broker is forecasting fully franked dividends per share of 16 cents in FY 2022 and 19 cents in FY 2023. Based on the current Baby Bunting share price of $4.82, this will mean yields of 3.3% and 3.9%, respectively.

Bank of Queensland Limited (ASX: BOQ)

Another ASX dividend share for income investors to consider is Bank of Queensland.

Analysts at Morgans believe it could be a top option in the banking sector, particularly given its solid home loan growth and attractive valuation. It has an add rating and $11.00 price target on its shares.

The broker said: “We see exceptional value in Bank of Queensland’s stock. The Company has been executing well on its transformation program, it continues to grow its home loan book at above-system levels, we don’t expect its NIM to fare worse than the industry-wide trend, and cost synergies associated with the ME Bank acquisition are being realised at a faster rate than originally anticipated.”

In respect to dividends, Morgans is forecasting fully franked dividends per share of 48 cents in FY 2022 and then 55 cents per share in FY 2023. Based on the current Bank of Queensland share price of $8.49 this will mean yields of 5.6% and 6.5%, respectively.

The post Brokers name 2 ASX dividend shares to buy appeared first on The Motley Fool Australia.

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• Own Bank of Queensland shares? Here’s what to watch when the company reports this week
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• Buy these ASX shares with huge upside: experts
• What’s the outlook for the Bank of Queensland share price in April?
• 5 things to watch on the ASX 200 on Thursday

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 recommended Baby Bunting. 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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The PointsBet Holdings Ltd (ASX: PBH) share price is on the move on Wednesday.

In morning trade, the sports betting and iGaming provider’s shares are up 2.5% to $3.14.

Why is the PointsBet share price pushing higher?

Investors have been bidding the PointsBet share price higher today following an announcement relating to the company’s iGaming operations.

PointsBet’s iGaming business complements the company’s core sports betting operation by offering gamblers a range of slot, video poker, and table games via an online casino.

According to today’s announcement, PointsBet has successfully launched its online casino product in Pennsylvania following authorisation by the Pennsylvania Gaming Control Board (PGCB) for a soft launch in the state.

The company notes that the roll out of its online casino operations follows quickly on the heels of the launch of its mobile app and digital sports betting product in the state in February.

In accordance with PGCB requirements, PointsBet will operate in a soft launch environment for two days before launching its full online casino operations in the state.

This is the fifth state that PointsBet’s proprietary iGaming platform will be active in. This follows previous launches in Michigan, New Jersey, West Virginia, and Ontario (Canada).

Management commentary

PointsBet’s President of Product and Technology, Manjit Gombra Singh, was pleased with the news.

He commented: “”It is an exciting time for the online casino market, and we’re proud to be able to tap into this momentum and introduce our proprietary product in Pennsylvania.”

“We’re quickly scaling our online casino business and looking forward to expanding and refining our suite of products throughout the year to deliver more options for our users in PointsBet online casinos,” Mr Singh added.

Investors will no doubt be hoping the good news keeps rolling in to support the PointsBet share price, which is down 55% in 2022.

The post Here’s why the PointsBet share price is charging higher today appeared first on The Motley Fool Australia.

More reading

• PointsBet share price sinks despite positive news
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• Game on: Why the PointsBet (ASX:PBH) share price is zipping higher today
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• ‘Compelling valuation’: Broker tips PointsBet (ASX:PBH) share price to rise 80%

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. owns and has recommended Pointsbet Holdings Ltd. The Motley Fool Australia has recommended Pointsbet Holdings Ltd. 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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened

Over the last 24 hours, as of 9:30 a.m. ET today, the price of Shiba Inu (CRYPTO: SHIB) had risen as much as 24% after the token was added to Robinhood’s online investing platform. The token also appears to be rising due to an upcoming mechanism being added to the network that would burn SHIB tokens and reduce the overall supply.

So what

Robinhood announced Tuesday morning that it had added four tokens that can now be traded on the platform, including SHIB. The popular online brokerage has been slow to add tokens, largely because CEO Vlad Tenev has wanted to make sure they don’t spook regulators by adding tokens that regulators believe are unregistered securities. The four new additions bring Robinhood up to 11 cryptocurrencies available on the platform. In comparison, SoFi’s online brokerage offers 30 different cryptocurrencies for sale.

The news is good for Shiba Inu because it makes the token accessible to potentially a whole new group of retail traders who have been asking Robinhood for more tokens. The platform has more than 17 million monthly active users.

In other news, Shiba Inu is expected to add a new burning portal to its network, which will burn tokens on every transaction, potentially removing trillions of tokens from circulation, which investors hope will drive up the price. Shiba Inu reportedly has roughly one quadrillion tokens in circulation.

Now what

Both of these events seem to be boosts for Shiba Inu. More exposure to millions of retail investors on an easy-to-use trading platform could certainly lead to more purchases, while future burning could take down supply, although I am not sure how much of a dent it would make.

I’m still not interested in investing in this cryptocurrency because it doesn’t seem to have any real unique advantage other than a popular following, but these are positive developments for SHIB.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Why Shiba Inu is soaring today appeared first on The Motley Fool Australia.

More reading

• Why Shiba Inu is plummeting today
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• Shiba Inu’s ride higher accelerates as the token surges 18%
• Is Shiba Inu ready for a bull run?

Bram Berkowitz 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.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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The Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price could be facing more pressure after a top broker downgraded its shares.

The ANZ Bank share price is already the worst performer among ASX big banks over the past year with a drop of over 5%.

While some may argue that the bank therefore represents better value, Morgan Stanley disagrees.

Why the ANZ Bank share price got downgraded

The broker cut its recommendation on ANZ Bank to equal-weight from overweight. This was largely due to the belief that bank revenue will keep falling.

“We expect ANZ’s revenue to decline again this year due to market share loss, falling margins and lower non-interest income,” said Morgan Stanley.

“Its 3-yr revenue CAGR is also likely to be below the major bank average, given weaker volume growth and more headwinds from increasing competition for deposits in Australia and New Zealand.”

Feeling the squeeze

If that wasn’t enough of a concern, its margins could be squeezed by rising costs too. The broker is unconvinced that ANZ Bank can deliver on its cost cutting promises in the near- and medium-term.

This is due to emerging inflation that is impacting on every sector and ANZ Bank’s ongoing need for investment.

Management is likely to stick to its FY23 exit rate target of $7 billion for normal operating expenses. But Morgan Stanley reckons that might be circa $400 million too little over a three-year period due to inflation.

“The need for higher ongoing investment could also see ‘change the bank’ costs stay >A$1bn for longer,” said the broker.

“We forecast total expenses of ~A$8.5bn in FY23E and ~A$8.4bn in FY24E.”

Other reasons why ANZ Bank could struggle

There are a few other niggling headwinds that could weigh on the ANZ Bank share price ahead of its results in May.

Morgan Stanley believes that the bank is not only losing share of the mortgage market, but also business banking.

ANZ Bank is also expected to benefit the least from the rising RBA cash rate compared to the other big banks.

What is the ANZ Bank share price worth?

The broker added that while ANZ mortgage run-off (loss of borrowers on its books) has stabilised, it will struggle to win business without sacrificing margin.

Those hoping that its IT initiative, ANZ Plus, will inject new life into the franchise will be disappointed too, according to Morgan Stanley.

The broker cut its 12-month price target on the ANZ Bank share price to $28.60 from $30.30 a share.

The post Own ANZ shares? Here’s why this broker is predicting ‘revenue headwinds’ appeared first on The Motley Fool Australia.

More reading

• Do CBA shares offer the highest big bank dividend yield?
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• Why are ASX 200 bank shares having such a stellar start to the week?
• Leading brokers name 3 ASX shares to buy today
• Is the NAB share price entering a ‘sweet spot’?

Motley Fool contributor Brendon Lau owns Australia & New Zealand Banking Group Limited. 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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While there are more than 2,000 companies listed on the ASX, smaller companies are considered to be riskier investments. This is due to having smaller resources than large cap companies, making them vulnerable to negative events and bearish sentiments.

In contrast, large cap companies are more established and have a much bigger balance sheet that can ride through market downturns. In effect, this provides investors with peace of mind when investing, delivering safe and reliable return over the long term.

Below, we take a look at which are the top 10 ASX mining companies by market capitalisation.

Who are the ASX’s biggest mining companies?

According to the ASX, the largest mining company in Australia, and the world for that matter, is none other than BHP Group Ltd (ASX: BHP).

The mining giant boasts a market capitalisation of $261.62 billion and is by far the biggest player on the ASX.

Next up, which may surprise you, is rags to riches business Fortescue Metals Group Ltd (ASX: FMG). The company was listed for just three cents per share (split adjusted) in 1989 and has surged to $21.17 as of yesterday’s close. That represents an astonishing increase of over 70,400%.

Fortescue commands a market capitalisation of around $65.24 billion.

Third on the list is Rio Tinto Ltd (ASX: RIO), valued at $43.62 billion.

As you can see, the top three spots are taken up by companies that are predominately involved with the mining and export of iron ore. This is undoubtedly Australia’s largest revenue source, accounting for $153 billion last financial year.

The following three places on the largest mining companies list are Newcrest Mining Ltd (ASX: NCM), South32 Ltd (ASX: S32), and Northern Star Resources Ltd (ASX: NST).

They preside a market capitalisation of $25.17 billion, $23.50 billion, and $12.43 billion, respectively.

Newcrest and Northern Star mine gold assets while South32 is focused on producing aluminium, coal, nickel, silver, and other metals.

The last four spots are covered by Mineral Resources Ltd (ASX: MIN), IGO Ltd (ASX: IGO), BlueScope Steel Ltd (ASX: BSL), and Pilbara Minerals Ltd (ASX: PLS).

The above companies have a market capitalisation of $11.20 billion, $10.60 billion, $10.07 billion, and $8.63 billion, respectively.

Foolish takeaway

In summary, selecting any of these ASX mining companies from 12 months ago would have increased your wealth.

Depending on which company you bought into, you would have achieved a gain of between 2% to 150% on your investment. Also bear in mind, that this does not include the juicy dividends the miners pay out to shareholders.

The post Here are the top 10 ASX mining companies by market cap appeared first on The Motley Fool Australia.

More reading

• If you’d bought $10,000 of Rio Tinto shares 5 years ago, here’s how much you’d have now
• 5 things to watch on the ASX 200 on Wednesday
• What is the biggest mining company on the ASX right now?
• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• What’s dragging the Pilbara Minerals share price 5% lower today?

Motley Fool contributor Aaron Teboneras owns Northern Star Resources Limited. 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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The Aurizon Holdings Ltd (ASX: AZJ) share price powered through last quarter, besting the market’s performance by 5%.

As of the final close of the March quarter, the Aurizon share price was $3.69, 5.73% higher than where it started the period.

For comparison, the S&P/ASX 200 Index (ASX: XJO) managed to end the quarter in the green – just. It gained 0.74% over the three months ended 31 March.

Additionally, Aurizon’s sector – the S&P/ASX 200 Industrials Index (ASX: XNJ) – slumped 3.84% over that same time frame.

So, what drove Aurizon’s stock to outperform through the first quarter of 2022? Let’s take a look.

What boosted the Aurizon share price last quarter?

After suffering through a rough 2021, the Aurizon share price bounced into the new year.

Interestingly, its strong performance in the March quarter came despite no price-sensitive news inspiring it to gain.

In fact, the only price-sensitive news to hit the market – Aurizon’s first-half earnings – saw its share price dip 0.55%.

Over the six months ended 31 December, Aurizon’s revenue increased by 1% on the prior comparable period. Meanwhile, its earnings before interest, tax, depreciation, and amortisation (EBITDA) fell 1%.

Aurizon also cut its dividend by 27% to maintain its credit rating ahead of its One Rail acquisition.

On top of that, the Aurizon share price might have been impacted by the company’s removal from the S&P/ASX 50 Index (ASX: XFL).

Its shares were dumped from the index on 21 March, replaced by those of Bluescope Steel Limited (ASX: BSL).

Finally, sentiment for Aurizon’s shares might have been boosted by demand for coal last quarter.

The company operates Australia’s largest coal rail network. It connects about 50 coal mines to three of Queensland’s major ports.  

As The Motley Fool Australia reported last quarter, sanctions placed on Russia following its invasion of Ukraine disrupted global supply of the black rock.

That could have pushed other nations to turn to Australian coal to fill the gap.  

The post The Aurizon share price had a stellar first quarter. Here’s why appeared first on The Motley Fool Australia.

More reading

• The Aurizon (ASX:AZJ) dividend is being paid today. Here’s what you need to know

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 recommended Aurizon Holdings Limited. 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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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.

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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