Rio Tinto (ASX:RIO) share price within 2% of all-time high

Rio Tinto shares hit a two-month high today. Here are the details

| More on:
asx share price inching higher represented by hand making gesture of small amount

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

It feels like the Rio Tinto Ltd (ASX: RIO) share price has spent most of this year drifting sideways, despite a solid year-to-date return of 13%.

Encouragingly, Rio Tinto shares closed 2.23% higher today at $131.14, within arms reach of their record high of $132.94.

Rio Tinto share price breaking out?

Resources was the best-performing sector today, with the S&P/ASX Materials (INDEXASX: XMJ) index gaining 1.37%.

Iron ore majors Rio Tinto, BHP Group Ltd (ASX: BHP), and Fortescue Metals Group Ltd (ASX: FMG) led the way, gaining 2.23%, 1.12% and 2.06% respectively.

All three heavyweights are close to retesting previous all-time highs set around May this year.

Supporting today's strong performance is the iron ore spot price. This has continued to remain firm, trading at US$217.94/tonne, according to Market Index.

Since late April, iron ore prices have surged from US$170/tonne to well over US$200/tonne.

However, the Rio Tinto share price has struggled to follow, largely moving sideways.

This could be in response to experts, including the Australian Government's commodity forecaster, Office of the Chief Economist (OCE), and Goldman Sachs predicting iron ore could fall in the short to medium term.

The OCE June quarterly report said: "Prices are forecast to average around US$150 a tonne in 2021, before falling to below US$100 a tonne by the end of 2022, as Brazilian supply recovers and Chinese steel production softens."

It's not all doom and gloom for Rio Tinto shares

Contrary to expectations, Macquarie currently has an outperform rating and $163 target for the Rio Tinto share price.

As covered by my colleague James Mickleboro, the broker believes the iron ore miner could be paying some generous dividends in the near term. It is forecasting a fully franked dividend per share of $13.19 in FY21 and $11.16 in FY22.

At current prices, this translates to yields of 10.07% and 8.52%.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the 'five best ASX stocks' for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now...

See The 5 Stocks *Returns as of 30 April 2025

Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Gainers

The silhouettes of ten people holding hands with their arms raised against the sky, as the sun rises or sets in the background.
Share Gainers

Here are the top 10 ASX 200 shares today

ASX shares finished the trading week on a high this Friday.

Read more »

A businessman stacks building blocks.
Technology Shares

6% gain! What's up with Block shares today?

Block shares are up more than 34% since 2 May.

Read more »

A young man punches the air in delight as he reacts to great news on his mobile phone.
Share Gainers

Why ARB, Block, Mayne Pharma, and Paladin Energy shares are charging higher today

These shares are having a strong finish to the week. But why?

Read more »

A woman puts her hands up as she smashes and breaks through a glass ceiling.
Share Gainers

How these 5 ASX 200 stocks are smashing the benchmark this week

These fives ASX 200 stocks have made some very happy shareholders this week. Here’s how.

Read more »

A man looking at his laptop and thinking.
Share Gainers

Here are the top 10 ASX 200 shares today

The markets lost their steam this Thursday.

Read more »

Ecstatic woman looking at her phone outside with her fist pumped.
Share Gainers

Why Catapult, Hutchinson, SKS, and West African shares are pushing higher today

These shares are having a strong session despite the market weakness.

Read more »

Rising gold share price represented by a green arrow on piles of gold block.
Gold

Up 72% in 2025, why is this ASX 200 gold stock racing ahead of the benchmark again today?

Investors are bidding up this high-flying ASX 200 gold stock again on Thursday. But why?

Read more »

Businessman smiles with arms outstretched after receiving good news.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a wonderful Wednesday session for investors today.

Read more »