Rio Tinto
Website:
Rio Tinto
Index:
FTSE 100
EPIC: RIO
Supersector:
Basic Resources
Sector:
Mining
Subsector:
General Mining
Market Cap:
£79.54B
Payout Frequency: Semi-Annual
Rio Tinto Dividend Analysis and Summary
Key Dividend Details
- Final ordinary dividend: 254 US cents per share
- Total FY2025 ordinary dividend: 402 US cents per share (flat year-on-year; interim 148c vs 177c prior year, final 254c vs 225c)
- Total cash outlay (ordinary): $6.5 billion (based on 60% payout of underlying earnings)
- Payout ratio: 60% of underlying earnings (tenth consecutive year at the top end of policy range)
- Currency: US dollars; Rio Tinto Limited dividend fully franked
Ex-Dividend and Payment Timetable
- Ex-dividend date (plc & Limited): 05/03/2026
- ADR ex-dividend date: 06/03/2026
- Record date: 06/03/2026
- DRIP/alternate currency election deadline: 24/03/2026
- Currency conversion date: 07/04/2026
- Payment date: 16/04/2026
Context and Coverage
- Underlying earnings: $10.9bn; Underlying EBITDA: $25.4bn; Operating cash flow: $16.8bn
- Capex: $12.3bn (growth $4.1bn, replacement $3.6bn, sustaining $4.5bn, decarbonisation $0.2bn)
- Free cash flow: $4.0bn (vs $6.5bn ordinary dividend declared, implying sub-1x FCF cover on a period basis)
- Net debt: $14.4bn (gearing 18%), up $8.9bn mainly due to the Arcadium lithium acquisition; interest cover: ~16x
- Policy: Board targets 40–60% of underlying earnings through the cycle; FY2025 set at 60%
Analysis: Sustainability and Outlook
- Sustainability: The 60% payout remains supported by strong earnings and balance sheet headroom. However, 2025 free cash flow ($4.0bn) was below dividends declared ($6.5bn) due to elevated capex, indicating reliance on ongoing cash generation and balance sheet flexibility rather than current-period FCF.
- Growth trajectory: Full-year dividend is flat at 402c; mix shifted (higher final, lower interim). Medium-term earnings support looks constructive with copper growth (Oyu Tolgoi ramp, lower copper unit costs), aluminium performance, and initial Simandou contribution; management guides ~3% CuEq production CAGR to 2030.
- Support from performance and capital allocation: Solid operations (underlying EBITDA +9%) and disciplined capex framework underpin the payout. 2026 capex guide is “up to $11bn,” still high but balanced by targeted $5–10bn asset monetisations and cost/productivity initiatives. Rising net debt post-Acadium is manageable at current gearing, but sustained high capex keeps FCF cover tight near term.
Structural Changes and Potential Dividend Impacts
- Arcadium (lithium) acquisition closed (Mar 2025): adds growth optionality but increases capex and net debt; integration costs recognized.
- Portfolio reshaping: Market testing/strategic review of borates and TiO2 and infrastructure monetisation targeting $5–10bn proceeds—potentially supportive for balance sheet/dividend cover if executed.
- Operating model reorganisation: Streamlined into three product groups; expected ongoing cost benefits support margins and cash flow.
- Major project ramp-ups: Simandou first shipment achieved; 30-month ramp to full capacity; Oyu Tolgoi underground now complete and ramping; AP60 aluminium expansion commissioning by Q1 2026—execution influences future cash generation and dividend headroom.
- Asset-specific changes: Yarwun alumina 40% curtailment from Oct 2026 to extend life; near-term earnings/cash effect to monitor.
Risks and Flags for Dividend Stability
- FCF undercoverage in 2025 versus dividend due to high capex; continued elevated 2026 capex could keep cover tight despite strong OCF.
- Commodity sensitivity: Iron ore prices were lower YoY; EBITDA sensitivity to iron ore and aluminium remains significant.
- Project execution risk: Simandou and multiple lithium projects (Rincon, Fénix, Sal de Vida, Nemaska) require substantial spend and flawless ramp-ups.
- Legal/tax: Oyu Tolgoi tax assessments (~$440m) under dispute; potential cash/timing impact if unresolved.
- Operational/cost risks: Pilbara unit costs exposed to FX (AUD/USD) and inflation; cyclone/weather disruption risk persists.
- Policy dependence: Dividend bound to 40–60% of underlying earnings; a downturn in prices or higher-than-planned capex could drive a payout reset toward the mid-range.
- Aluminium tariffs: US tariff costs (~$1.0bn in 2025) largely offset by premiums, but policy changes remain a variable.
Read more
Rio Tinto Annual Dividend Yield - 5.38%
Dividends Used in Calculation:
| Ex-Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 06/03/2025 |
17/04/2025 |
Final |
225.00p |
GBX |
| 14/08/2025 |
25/09/2025 |
Interim |
148.00¢ |
USX |
Total (Annual Dividends Per Share):
335.79p
(Using exchange rate on 19/03/2026
$ = £0.74856)
Dividend Yield =
Annual Dividends Per Share (335.79p)
÷ Share Price (6246p)
= 5.38%
Rio Tinto Dividend History
| Ex Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 05/03/2026 |
16/04/2026 |
Final |
254.00¢ |
USX |
| 14/08/2025 |
25/09/2025 |
Interim |
148.00¢ |
USX |
| 06/03/2025 |
17/04/2025 |
Final |
225.00p |
GBX |
| 15/08/2024 |
26/09/2024 |
Interim |
177.00p |
GBX |
| 07/03/2024 |
18/04/2024 |
Final |
258.00p |
GBX |
| 10/08/2023 |
21/09/2023 |
Interim |
177.00p |
GBX |
| 09/03/2023 |
20/04/2023 |
Final |
225.00p |
GBX |
| 11/08/2022 |
22/09/2022 |
Interim |
267.00p |
GBX |
| 10/03/2022 |
21/04/2022 |
Special |
62.00p |
GBX |
| 10/03/2022 |
21/04/2022 |
Final |
417.00p |
GBX |
| 12/08/2021 |
23/09/2021 |
Interim |
376.00p |
GBX |
| 12/08/2021 |
23/09/2021 |
Special |
185.00p |
GBX |
| 04/03/2021 |
15/04/2021 |
Special |
93.00p |
GBX |
| 04/03/2021 |
15/04/2021 |
Final |
309.00p |
GBX |
| 06/08/2020 |
17/09/2020 |
Interim |
155.00p |
GBX |
| 05/03/2020 |
16/04/2020 |
Final |
231.00¢ |
USX |
| 08/08/2019 |
19/09/2019 |
Interim |
151.00¢ |
USX |
| 08/08/2019 |
19/09/2019 |
Special |
61.00¢ |
USX |
| 07/03/2019 |
18/04/2019 |
Special |
243.00¢ |
USX |
| 07/03/2019 |
18/04/2019 |
Final |
180.00¢ |
USX |
| 09/08/2018 |
20/09/2018 |
Interim |
127.00¢ |
USX |
| 01/03/2018 |
12/04/2018 |
Final |
180.00¢ |
USX |
| 10/08/2017 |
21/09/2017 |
Interim |
110.00¢ |
USX |
| 23/02/2017 |
06/04/2017 |
Final |
125.00¢ |
USX |
| 11/08/2016 |
22/09/2016 |
Interim |
45.00¢ |
USX |
| 25/02/2016 |
07/04/2016 |
Final |
107.50¢ |
USX |
| 13/08/2015 |
10/09/2015 |
Interim |
107.50¢ |
USX |
| 05/03/2015 |
09/04/2015 |
Final |
119.00¢ |
USX |
| 13/08/2014 |
11/09/2014 |
Interim |
96.00¢ |
USX |
| 05/03/2014 |
10/04/2014 |
Final |
108.50¢ |
USX |
| 14/08/2013 |
12/09/2013 |
Interim |
83.50¢ |
USX |
| Year |
Interim |
Final |
Special |
Currency |
Total |
Change |
| 2024 |
177.000 |
225.000 |
|
GBX |
402.000 |
-7.580 |
| 2023 |
177.000 |
258.000 |
|
GBX |
435.000 |
-21.480 |
| 2022 |
267.000 |
225.000 |
62.000 |
GBX |
554.000 |
-48.270 |
| 2021 |
376.000 |
417.000 |
278.000 |
GBX |
1,071.000 |
130.810 |
| 2020 |
155.000 |
309.000 |
|
GBX |
464.000 |
-32.360 |
| 2019 |
151.000 |
231.000 |
304.000 |
USX |
686.000 |
123.450 |
| 2018 |
127.000 |
180.000 |
|
USX |
307.000 |
5.860 |
| 2017 |
110.000 |
180.000 |
|
USX |
290.000 |
70.580 |
| 2016 |
45.000 |
125.000 |
|
USX |
170.000 |
-20.930 |
| 2015 |
107.500 |
107.500 |
|
USX |
215.000 |
0.000 |
| 2014 |
96.000 |
119.000 |
|
USX |
215.000 |
11.970 |
| 2013 |
83.500 |
108.500 |
|
USX |
192.000 |
|
Rio Tinto Dividend Calculator
Rio Tinto Dividend Growth
| Dividend Growth (1Y) |
-3.72%
|
| Dividend CAGR (5Y) |
-6.07%
|
| Years of Growth |
–
|
| Payout Ratio |
61.66%
|
| Buyback Yield |
-0.28%
|
| Shareholder Yield |
4.24%
|
| P/E Ratio (TTM) | 14.02 |
|---|
| Forward P/E | 10.65 |
|---|
| P/FCF | 32.67 |
|---|
| Earnings Yield | 6.78% |
|---|
| FCF Yield | 3.06% |
|---|
| ROE | 16.4% |
|---|
| ROCE | 12.83% |
|---|
| Profit Margin | 17.29% |
|---|
| Operating Margin | 25.19% |
|---|
| Gross Margin | 28.12% |
|---|