RIO - Rio Tinto: Attractive Dividend Play If You Accept Certain Short-Term Risks

2024-06-18 11:46:41 ET

Summary

• Rio Tinto is among the most attractive high dividend plays in the basic materials sector with a current yield of 6.6%.
• From an operation point of view, there are no immediate risks for the dividend as management steers the business in the right direction.
• The main risks for the dividend are related to external macroeconomic factors which are slowly being negated.

As the equity market makes new all-time highs and the implied risk for equities is hovering near record-highs as well, it is prudent for investors to reduce risk....

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