RIO reported after the market on Wednesday, again its earnings and dividend disappointed investors although the stock’s reaction has so far been muted compared to BHP i.e. the stock only slipped -1.7% yesterday. The dividend halved compared to this time last year due to falling iron ore prices but a $3.84 fully franked payment is still very attractive to most investors – RIO is forecast to yield more than 5% over the coming 12 months.
- We have preferred BHP to RIO over the last year but we are now considering adopting a more evenly balanced stance between the two.
MM likes RIO towards the $115 area
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