4 days ago
Rio Tinto May Pay $1 Billion Special Dividend, Says RBC Capital Markets
Rio Tinto (RIO.AU) (RIO.UK) shareholders could be set for a treat when it reveals its first half profits in August, with RBC Capital Markets saying the miner could pay a $1 billion special dividend. The broker says Rio Tinto (RIO) is in a good position to pay out an additional dividend above the $0.86 first dividend per share (DPS) they are forecasting as the miner's gearing has fallen on lower capex, cost cutting and a rebound in commodity prices, all of which are helping boost free cash flow (FCF). Here's why RBC Capital Markets reckons there could be a cash bonanza: We expect the business will generate an additional $4.2bn in FCF in H2, further improving balance sheet strength.