Here's the Rio Tinto dividend forecast through to 2024

Rio Tinto has been tipped to pay some big dividends…

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The Rio Tinto Limited (ASX: RIO) share price has returned to form on Monday.

In afternoon trade, the mining giant's shares are up 2% to $103.48.

Despite this gain, the Rio Tinto share price remains down 25% from its 52-week high.

In light of this, income investors may be wondering what this share price weakness means for the Rio Tinto dividend in the coming years.

Where is the Rio Tinto dividend heading?

According to a note out of Goldman Sachs, its analysts appear to believe FY 2021's US$10.40 per share fully franked dividend could be the near term peak. However, it is still expecting some very big yields from the mining giant.

For example, in FY 2022, the broker expects Rio Tinto's dividend to come in at a fully franked US$8.70 (A$12.55) per share. Based on the current Rio Tinto share price, this would mean a very generous fully franked 12.1% dividend yield for investors.

In FY 2023, the broker is forecasting a similarly big dividend from Australia's second largest miner. It has pencilled in a fully franked US$8.49 (A$12.25) per share dividend from the company. This represents an 11.8% yield for investors.

Finally, with Goldman expecting iron ore prices to weaken in FY 2024, it is forecasting a dividend cut to US$6.78 (A$9.78) per share. But despite this cut, this would still represent an above-average 9.5% dividend yield for investors.

Should investors buy Rio Tinto shares?

As well as big dividend yields, Goldman Sachs sees plenty of value in the Rio Tinto share price.

The note reveals that its analysts have a buy rating and $131.00 price target on its shares. This implies potential upside of almost 27% for investors over the next 12 months.

Goldman commented: "Rio is a FCF story in our view, however, and we see the company returning to growth in 2022 & 2023 with a c. 3% and 5% increase in Cu Eq production."

Motley Fool contributor James Mickleboro 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 Scott Phillips.

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