Summer Sale

50% off Premium Yearly

00days
00hrs
00mins
00secs

NYSE:RIO

Rio Tinto (RIO)

100.26
+0.18 (0.18%)
as of Jun 18, 2026, 11:44:09 pm Market Open.
65 watching
0
BUY
Trades at a low multiple. Iron ore is their biggest asset. They generate a ton of cash which they use to pay down debt. The key is China which will dictate RIO's demand. Generally, the big miners are safer in you want to be in mining, because they have a lot of free cash and are conscious of return on capital. The dividend is safe with a payout ratio around 50%.
COMMENT
Safe dividend? Yes and no. They slashed it during the Great Recession and 2015 when commodities declined. They have a strong balance sheet. Don't expect their dividend to consistently rise. They pay out less when things are good, and pay more when things are good, which is the right thing to do.
BUY ON WEAKNESS
Believes dividends at the company are safe given price of commodities. Risk is that M&A will result in paying too much for assets at the top of the market. New management awareness of shareholders in the form of debt reduction, share buybacks & dividends.
WEAK BUY
Becoming more shareholder friendly. In this environment, bigger players are much safer. Involved in lithium and renewables, so this helps. Iron ore is their biggest business, and the slowdown in China has hurt. More stable than before, so not a bad mining company to own. Yield is around 7%.
DON'T BUY
"The dividend is talking to you" on this stock. Is that dividend sustainable? If commodity prices fall, is the dividend susceptible to being cut? Buyer beware.
WEAK BUY
If you believe in the resource boom, you want to own a large cap, as it will protect you with earnings and dividends if the market moves around a lot. Cyclical, so not a great business overall.
BUY
Almost a must own if we are not facing a synchronized global recession since that would reduce demand. It is up to the individual investor to make a decision on the possibility of a recession. It is one of the top iron producers and has multi-decade deposits. Aluminum prices are doing well. Good free cash flow and dividend. There is increasing pressure to make investments and its track record on this is mixed.
TOP PICK
130B company that gets majority of earnings from iron ore and aluminum. Aluminum prices are breaking out. Infrastructure bill, reopening, supply constraints. In last 5 tightening cycles by the Fed, commodities have worked in all 5 for the next 18 months. Yield is 9.71%, depends on profitability, with room to grow. Great way to protect from reflation. (Analysts’ price target is $75.20)
PARTIAL BUY
He owns it for the big, fat yield. Longer term, an interesting play. Dividend varies with earnings, and will probably be lower in the next 12 months. Yield cut in half would still be a respectable 5-6%. Buy in stages.
WAIT
RIO vs. TECK.B Similar companies, with one big difference. RIO gets 65% of revenue from iron ore. TECK.B is more focused on coal, zinc, and energy. He'd choose TECK.B today. RIO will be OK, but suffering because iron ore prices have come down. This will ultimately reverse. Looking out 3 years, both should do quite well.
PAST TOP PICK
(A Top Pick Jul 27/20, Up 26%) Had a good run. Iron ore prices have corrected. Interesting area around this price. He'd want to see it turn higher over the next 2-3 weeks before he added new positions. If we're in a commodity cycle, this could be a leading stock for a very long time.
BUY
Cyclicals and resource stocks will continue to do well. Worries of China slowing triggered a sell-off but these stocks are coming back. RIO is global with assets in investor-friendly countries. He likes their asset mix. The dividend is safe, but beware of withholding taxes on this. He's still buying this.
BUY
Just declared a very sizeable, special dividend. Stock dropped once that was announced, which is not atypical. Great way to play diversified materials. Iron ore has pulled back, and this is impacting the stock. Took out its old highs in January, and this usually means a new run for the stock. Buy here, if you can stomach the consolidation. Looking to be a strong performer for the next 1-2 years.
BUY

Both Australian plays. You get global plays and get exposure to a lot of metals. Mostly copper, iron ore and some energy. Hasn't bought in Canada since there are no quality companies - they were all bought by BHP and RIO. Everybody should own some global metal stocks. Buy to trade.

BUY
Metals and Mining sector. It is performing well right now. March and into April it should perform quite well due to seasonal strength. It can continue to move higher. He would put a trailing stop on it sometime in March.
Showing 16 to 30 of 77 entries