Is Rio's dividend in trouble too?

Although it’s BHP Billiton that has been in the spotlight, the latest fall in commodity prices will hurt both miners.

Summary: Although BHP Billiton’s dividend question has been in the spotlight, the fall in commodity prices will hurt Rio Tinto too. Rio’s profit is expected to fall this year and next, with most of the forecast $US3.9 billion profit for calendar 2016 likely to be absorbed by dividend payments if the $US2.15 payout is maintained.

Key take out: With commodity prices under pressure, the prospect of dividends becoming part of the “lower-for-longer” trend should not be ignored.

Key beneficiaries: General investors. Category: Mining stocks.


SMS Code Sent…

Hi {{ user.FirstName }}

Looks like you've already taken a free trial

We have sent you a code via SMS to {{user.DayPhone}}

please enter this code below to activate your membership

If you didn't receive SMS code please

Looks you are already a member. Please enter your password to proceed

Verify your mobile number to unlock a FREE trial

Please sign up for full access

Updating information

Please wait ...

Related Articles