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. Regarding Rio Tinto Ltd, the DDM model, as implemented by StockNews, implies a positive return of 116.58% 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:

• As for its position relative to other Basic Materials stocks that issue dividends, Rio Tinto Ltd offers a higher dividend yield than 89.83% of them.
• Rio Tinto Ltd has annual revenue of approximately $43 billion; this puts it in the large-sized revenue class -- where its dividend growth rate surpasses that of 86.6% of US-listed, dividend-issuing stocks in the same revenue class.
• In terms of opportunity, Rio Tinto Ltd's estimated return of 116.58% surpasses about 88.18% of dividend issuers we applied the dividend discount model to.

RIO Dividends vs. Peers