RIO currently pays one of the highest dividends in the ASX200 with a large 6.69% at current prices. But is this sustainable and why is their dividend so high? This is our RIO Dividend Report.

RIO Dividend Snapshot

RIO Dividend Snapshot
RIO Dividend Snapshot
Rio Tinto Current Share Price$109.70 / share
DPS (Trailing 12-Month)$7.3
Gross DPS (Trailing 12-Month)$10.47
Dividend yield6.69%
Gross yield9.55%
Payout Ratio67%
DRP DiscountNo
RIO Dividend Snapshot

RIO Dividend Dates 2021

Rio Tinto Dividend Ex. Date FY21 Interim
Rio Tinto Dividend Ex. Date FY21 Interim
SummaryInterim Dividend FY21Final Dividend FY20
Declaration date13/08/2021TBA
Ex-div date12/08/202104/03/2021
Pay date23/09/202115/04/2021
RIO Dividend Dates FY21

RIO Dividend History Graph

RIO Dividend History
RIO Dividend History

RIO typically announces a dividend with the release of its half-year results in July and full-year results in March as seen in their financial calendar.

RIO Dividends are typically paid twice a year, in April (final dividend) and September (interim dividend).

RIO has paid biannual dividends every year since 2011. Including 2020 during the COVID-19 recessionary period. All dividends have been fully franked. They also offer a Dividend Reinvestment Plan (DRP).

RIO Yield Comparison

RIO’s current gross dividend yield is 9.55%. This is above the market average. At the time of writing RIO has one of the highest dividend yield within the ASX 300.

The current RIO yield of 9.55% grossed up far exceeds the Average Term Deposit rate of 0.4%

RIO Dividend Comparison
RIO Dividend Comparison (Gross Yield)

Net RIO Dividend Yields Over Time

We can see RIO’s net dividend yield has fluctuated substantially, averaging around 5-6% over the last 10-years. From this, we can RIO’s current net yield of 6.69% is slightly above the historical average

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We can see the yield spike in 2018 due to a significant increase in their dividend payment. This yield tapered off slightly as the share price increased.

RIO Dividend 2021 and Historical Yield
RIO Dividend 2021 and Historical Yield

RIO Dividend 2021 Payout Ratio

A companies dividend payout ratio is the ratio of the total dividend sum paid out relative to the net income of the company. It is the percentage of earnings paid to shareholders in dividends.

RIO Current and Forecast Payout Ratio
RIO Current and Forecast Payout Ratio

Based on current averages RIO’s payout ratio is 67%, this is slightly higher than the boards intended dividend payout policy of between 40-60% of earnings.

In FY21 we saw RIO declare a special dividend, that is an additional dividend outside of the interim and final dividend. This special dividend totalled $2.51 per share and is to be paid with the companies interim dividend.

RIO Share Price

The share price of Rio Tinto at the time of writing is $109.7 with a market capitalisation of $40.7billion.

The share price has increased 15.36% this year, however this has actually underperformed the ASX200 benchmark over the similiar 1-year period.

RIO Dividend Policy

RIO:ASX Dividend Policy is:

  • The board expects total cash returns to shareholders over the longer term to be in a range of 40 to 60 per cent of underlying earnings in aggregate through the cycle.
  • Acknowledging the cyclical nature of the industry, in periods of strong earnings and cash generation, it is the board’s intention to supplement the ordinary dividends with additional returns to shareholders.

When Will My RIO Dividends be Paid?

RIO Tinto Dividend Payment Dates
RIO Tinto Dividend Payment Dates

The mining company typically announces a dividend with the release of its full year results in February and their half year results in July.

Dividends are typically paid twice a year, in April (final dividend) and September (interim dividend).  Payment dates are listed on the companies financial calendar

RIO Dividend Reinvestment Plan (DRIP)

RIO Dividend Reinvestment Plan (DRIP) Facts
RIO Dividend Reinvestment Plan (DRIP) Facts

A DRIP or dividend reinvestment plan allows investors to automatically reinvest their dividends for additional shares in the company. Using this method, the investor will still receive the franking credit and will still be taxed on the cash value of their dividend. 

The simplest way to elect to participate in a company’s DRIP is through the related share registry (i.e. Computershare or Link Market Services).

  • In Computershare it’s as simple as going ‘my profile’- ‘Reinvestment plans’ and selecting the company and electing to participate in full or partially. That is either the entire amount or a partial amount of your dividend is reinvested.
  • On Link you simply click view details of the company of interest and update it in the ‘payments and tax’ section.

For more information check out our ASX DRIP VS NON-DRIP Guide

RIO Dividend Report History

Rio Historical Dividend History
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