Rio Tinto Ltd shares have long been a popular choice with Australian income investors.
Rio Tinto and BHP Group Ltd are regular fixtures in many income portfolios for good reason.
Rio Tinto has assets generating cash today while still investing for the future.
At the current Rio Tinto share price, that works out to be prospective dividend yields of around 3.8% and 4%, respectively.
Rio Tinto is not the type of income share where to expect the dividend to rise neatly every year.
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Rio Tinto Ltd shares have long been a popular choice with Australian income investors. Rio Tinto and BHP Group Ltd are regular fixtures in many income portfolios for good reason.
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Rio Tinto Ltd shares have long been a popular choice with Australian income investors.
The mining giant has returned amounts of cash to shareholders over the years.
Rio Tinto and BHP Group Ltd are regular fixtures in many income portfolios for good reason.
For Rio Tinto, iron ore remains a part of the business. Its Pilbara operations produce large volumes and have generated profits.
For income investors, that mix works well. Rio Tinto has assets generating cash today while still investing for the future.
For passive income investors, Rio Tinto's dividend is one of the main reasons to consider the shares.
According to consensus forecasts, the miner is expected to pay fully-franked dividends of $6.34 per share in FY26 and $6.62 per share in FY27.
At the current Rio Tinto share price, that works out to be prospective dividend yields of around 3.8% and 4%, respectively.
For me, the bigger point is that investors are getting a reasonable level of income from a company to also be comfortable owning for the long term.
At the current share price, Rio Tinto is therefore trading on a P/E ratio of around 14 times forecast earnings.
Of course, Rio Tinto's earnings will always move with commodity prices.
Rio Tinto is not the type of income share where to expect the dividend to rise neatly every year.
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The Motley Fool AustraliaShould I buy Rio Tinto shares for passive income?plain
The Motley Fool Australia3 ASX shares I'd to buy for income and growth in retirement1 change
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