Rio Tinto PLC ADR (RIO) Dividends

RIO Price Forecast Based on Dividend Discount Model

For dividend yielding stocks, the Dividend Discount Model (DDM) is a common valuation tool; it attempts to extrapolate a fair share price based primarily on the dividend the stock provides relative to a number of other quantiative aspects of its business. Regarding Rio Tinto Ltd, the DDM model, as implemented by StockNews, implies a positive return of 661.2% relative to its current price. Some interesting points we thought investors may wish to consider regarding the dividend discount model forecast for Rio Tinto Ltd are:

• Relative to all dividend yielding stocks in our set, Rio Tinto Ltd's dividend yield of 10.7% is in the top 2.38%.
• In comparison to other US listed dividend yielding stocks in the Basic Materials sector, Rio Tinto Ltd's expected return of 661.2% is higher than 91.85% of its fellow sector mates.
• Out of all stocks in our universe of US-listed dividend-issuing stocks, RIO has a discount rate lower than 91.85% of them (a lower discount rate is associated with lower risk).
• The Rio Tinto Ltd's dividend growth rate is greater than 96.33% of dividend issuers in the large-sized market cap class, where it lives.

RIO Dividends vs. Peers