How much dividend does Rio Tinto pay to its shareholders?

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Summary

  • Rio Tinto is engaged in producing materials essential to human progress.
  • The dual-listed company operating in 35 countries is among the leading producers of iron ore, copper, and aluminium across the globe.
  • The Board considers various factors to determine an appropriate total level of ordinary dividend per share at the end of each financial year.

Rio Tinto is the world’s second-largest metals & mining company with operations in 35 countries. The company has a strong project portfolio focused on producing materials essential for a low-carbon future. RIO is among the leading producers of iron ore, copper, aluminium, and several other minerals.

The group operates under a dual listed company structure of Rio Tinto Limited (ASX:RIO) and Rio Tinto plc. Rio Tinto Limited shares are listed on the Australian Securities Exchange (ASX), while Rio Tinto plc shares are listed on the London Stock Exchange and Rio Tinto plc American depositary receipts (ADRs) are listed on the New York Stock Exchange.

To create superior and sustainable values for shareholders, the company, along with its stakeholders, focuses on maximising cash from its high-end business units, addressing its customers' requirements, and investing capital in a disciplined manner.

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The world's second-largest mining corporation serves the entire value chain of the industry including exploration and evaluation, development, mining, processing, and marketing of minerals.

The miner uses advanced and innovative systems like automation, artificial intelligence, and smart mining to set a benchmark in the industry by offering more safer and productive operations.

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Rio’s Robust Portfolio

The miner primarily operates in four major product groups including copper, iron ore, aluminium, and other minerals.  

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Iron Ore:

Iron ore is the key raw material required for manufacturing steel. Rio is one of the leading producers of iron ore in the world.

The company’s iron ore operations majorly sit within the Pilbara region of Western Australia. Rio has 16 integrated mines in Western Australia and produces five iron ore products including the Pilbara Blend™ in the region. Pilbara Blend™ is the most recognised brand of iron ore, globally.

The company also has operations in Dampier Salt, which account for the largest export of seaborne salt in the world.

Aluminium:

Lightweight and recyclable, aluminium is among the fastest growing major metals, globally. A global leader in aluminium, RIO boasts a vertically integrated business that includes bauxite mines, refineries, and smelters producing certified aluminium.

The miner has four bauxite mines in Brazil, Australia and Guinea, four alumina refineries in Australia, Brazil and Canada, 14 aluminium smelters in Australia, Canada, New Zealand, Oman and Iceland, and seven hydropower plants in Canada.

Copper:

Copper is an important metal, required for the shift to a low-carbon future. It has extensive use in the production of electric vehicles and other renewable power generation equipment.

RIO has three copper operations in the US, Mongolia and Chile, coupled with two copper growth projects in Australia, Mongolia, and the US.

Other Minerals:

The mining group is also engaged in the exploration and production of essential materials used in a variety of industries across the globe.

Its iron ore pellets, borates, and titanium dioxide from operations in Africa, Canada and the US are unlocking value from high-grade orebodies which are used in electric vehicles, renewable energy, and agriculture industries.

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Does Rio Tinto pay dividends?

RIO is among the consistent dividend payers in the industry. The board considers various aspects such as outlook of the major commodities, financial performance, and long-term growth prospects to determine an appropriate total level of ordinary dividend per share.

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In February this year, the group announced a final dividend of 309.0 US cents along with a special dividend of 93.0 US cents per share for FY20 ended 31 December 2020. The total dividend for the period stood at US$9 billion, equivalent to 557 US cents per share and 72% of underlying earnings.

For Rio Tinto Limited, the final dividend stood at 397.48 Australian cents and special dividend of 119.63 Australian cents per ordinary share. For Rio Tinto Plc, the final dividend was 221.86 British pence and special dividend of 66.77 British pence per ordinary share.

Additionally, the holders of American Depositary Receipt received dividends.  

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When did RIO go ex-dividend?

The last dividend from Rio Tinto plc went ex on 4 March 2021 and was paid on 15 April 2021. The next Rio Tinto plc interim dividend is expected to go ex on 12 August 2021 with the payment anticipated on 23 September 2021. There are generally two dividends per year excluding special dividends.

Rio Tinto Limited paid a special and a final dividend on 15 April 2021 with an ex-dividend date of 4 March 2021.


 


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