Buy, Sell or Hold: Rio Tinto (RIO-N) — Stock Predictions at Stockchase

NYSE:RIO

55.06

0.12 (0.22%) 1d

Showing 1 to 15 of 66 entries

COMMENT

It has some relationship with the commodity price of iron ore so its dividend varies over the years. It is coming down to 7 to 8% but this still makes it still a good income stock.

other mines

HOLD

Mining companies being hit hard by rising interest rates. Investing capital into energy stocks instead. Expecting dividend to be maintained. Believes is a good long term hold.

other mines

WAIT

High dividend yield. Iron ore prices were over $200/tonne, but now they're $100, still extremely high. Steel looks particularly weak. Even in a recession, we won't go back to $50, but the yield should normalize closer to 7%. Wait and see, start to dabble in Q4.

other mines

WAIT

RIO vs. BHP For commodities as a whole, he's more of a trader, and he's not trading right now. Cyclicality impacts growth trends. Over time, the chart action is pretty horizontal. Both are good companies. Trade, don't put them in the closet and forget about them.

other mines

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%.

other mines

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.

other mines

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.

other mines

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%.

other mines

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.

other mines

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.

other mines

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.

other mines

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)

other mines

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.

other mines

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.

other mines

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.

other mines

Showing 1 to 15 of 66 entries

Rio Tinto(RIO-N) Rating

Ranking : 4 out of 5

Bullish - Buy Signals / Votes : 6

Neutral - Hold Signals / Votes : 1

Bearish - Sell Signals / Votes : 1

Total Signals / Votes : 8

Stockchase rating for Rio Tinto is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Rio Tinto(RIO-N) Frequently Asked Questions

What is Rio Tinto stock symbol?

Rio Tinto is a American stock, trading under the symbol RIO-N on the New York Stock Exchange (RIO). It is usually referred to as NYSE:RIO or RIO-N

Is Rio Tinto a buy or a sell?

In the last year, 8 stock analysts published opinions about RIO-N. 6 analysts recommended to BUY the stock. 1 analyst recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Rio Tinto.

Is Rio Tinto a good investment or a top pick?

Rio Tinto was recommended as a Top Pick by on . Read the latest stock experts ratings for Rio Tinto.

Why is Rio Tinto stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is Rio Tinto worth watching?

8 stock analysts on Stockchase covered Rio Tinto In the last year. It is a trending stock that is worth watching.

What is Rio Tinto stock price?

On 2022-09-30, Rio Tinto (RIO-N) stock closed at a price of $55.06.

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