Rio Tinto Raises Dividend by 18%

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

LONDON -- The shares of Rio Tinto (LSE: RIO  ) (NYSE: RIO  ) rallied 2% during early London trade after the miner lifted its annual dividend by 18%, though the shares have since slipped along with the broader market.

Rio declared a total payout of 106.77 pence per share for 2012 compared to 90.47 pence per share for 2011. The dividend lift accompanied full-year results that showed revenue falling $10 billion to $50 billion and underlying earnings declining $6 billion to $9 billion. Rio blamed the lack of progress on lower metal prices, which the firm said wiped $5 billion from its bottom line.

Rio's figures were also blighted by write-offs totaling $14 billion, which were revealed last month and triggered the appointment of a new chief executive. Sam Walsh, Rio's newly installed boss, said this morning:

Today I am setting out how we can build on our strengths and improve this great company. Under my leadership, Rio Tinto will have an unrelenting focus on pursuing greater value for shareholders. To do this we need to run the business as owners not managers and my immediate priority is to build more focus, discipline and accountability throughout the organization.

Walsh added that he was "targeting significant cash proceeds from divestments from non-core businesses in 2013" and "cumulative cash cost savings of more than $5 billion over the next two years."

Based on today's figures, Rio's shares trade on a P/E of 12 and yield 2.8%.

Of course, whether those ratings, today's statement, and the general outlook for miners and commodities all combine to make Rio a buy remains your decision. However, if you already own Rio shares and are looking to diversify, this free special report covers a tip-top growth opportunity with operations far removed from the mining sector.

Indeed, the blue chip in question has lifted its earnings per share by 44% since 2009, owns subsidiaries that might carry considerable hidden value, and has just been declared "The Motley Fool's Top Growth Stock For 2013." Just click here to download the report -- it's free.

Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2255814, ~/Articles/ArticleHandler.aspx, 9/25/2016 2:02:11 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 1 day ago Sponsored by:
DOW 18,261.45 -131.01 -0.71%
S&P 500 2,164.69 -12.49 -0.57%
NASD 5,305.75 -33.78 -0.63%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/23/2016 12:11 PM
RIO $2518.77 Up +28.77 +1.16%
Rio Tinto CAPS Rating: No stars
RIO $32.41 Down -0.11 -0.34%
Rio Tinto CAPS Rating: ***