Everyday Aussie investors often weigh Rio Tinto Ltd against APA Group when hunting for steady, passive income from shares.
Looking at the latest numbers, Rio Tinto boasts a market cap of $61.76 billion and a price-to-earnings ratio of 16.07.
According to its most recent company profile, Rio Tinto has grown through many mergers and acquisitions, which has helped it become such a dominant force.
APA Group's market cap is $14.27 billion, with a higher dividend yield at 5.39%.
The franking level on APA's dividends is well below Rio's: the latest is just 31.4%, and looking back, many past dividends have variable franking.
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Everyday Aussie investors often weigh Rio Tinto Ltd against APA Group when hunting for steady, passive income from shares.
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Everyday Aussie investors often weigh Rio Tinto Ltd against APA Group when hunting for steady, passive income from shares. The two are giants in different fields — with Rio Tinto at the heart of mining, and APA Group a backbone for Australia's energy infrastructure.
Rio Tinto is one of the world's largest miners, producing iron ore, aluminium, lithium, copper, and more.
Looking at the latest numbers, Rio Tinto boasts a market cap of $61.76 billion and a price-to-earnings ratio of 16.07. Its dividend yield stands at 3.99%, franked at 100%, meaning investors get the full benefit of franking credits. According to its most recent company profile, Rio Tinto has grown through many mergers and acquisitions, which has helped it become such a dominant force.
APA Group is Australia's top energy infrastructure company, running a sprawling network of gas, electricity, solar, and wind assets.
APA Group's market cap is $14.27 billion, with a higher dividend yield at 5.39%. Its P/E ratio is a lofty 68.36, which stands out compared to Rio Tinto's much lower multiple. The franking level on APA's dividends is well below Rio's: the latest is just 31.4%, and looking back, many past dividends have variable franking.
While APA Group boasts a punchier 5.39% yield and a record for steady dividends, its lower franking credit levels and high P/E ratio give me pause.
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