RIO Price Forecast Based on Dividend Discount Model

A technique commonly used by dividend investors to value dividend-issuing stocks is the Dividend Discount Model (DDM), which seeks to determine a fair share price based on the dividend provided by the company relative to a number of other company-specific factors. As for RIO, the dividend discount model StockNews created for the company implies a positive return of 134.6%. To help understand and contextualize the model's evaluation of RIO, investors may wish to consider are:

• As for its position relative to other Basic Materials stocks that issue dividends, Rio Tinto Ltd offers a higher dividend yield than 88.03% of them.
• RIO's annual revenue, now at roughly $43 billion US dollars, puts it in the large-sized revenue class -- where its dividend growth rate surpasses that of 86.98% of US-listed, dividend-issuing stocks in the same revenue class.
• Regarding its relative worth based on the dividend discount model, RIO's provides a return of 134.6% based on the forecast of the dividend discount model we used relative to its current share price; this is a better return than 86.54% of all stocks we measured with our dividend discount model.

RIO Dividends vs. Peers