How does the Rio Tinto dividend stack up against what BHP is offering?

How do Rio's latest dividends compare to arch-rival BHP?

| More on:
Man looking amazed holding $50 Australian notes, representing ASX dividends.

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

One of the blockbuster reports this earnings season was from the 'big dog' of the ASX, BHP Group Ltd (ASX: BHP). But BHP's fellow ASX 200 miner Rio Tinto Limited (ASX: RIO)? Not so much.

BHP revealed its full-year results for FY22 back on 16 August, and they certainly caused quite a stir. The BHP share price leapt more than 4% that day and was almost 10% higher by the end of last week. The savage selling we have seen over this week has brought the mining giant back to earth somewhat, but we can still come to the conclusion that investors loved what the miner had to say.

No doubt this was assisted by BHP's dividend announcement. The Big Australian declared a final dividend of US$1.75 per share. That's 12.5% lower than the monstrous final dividend of US$2 per share that we saw last year, but it still makes BHP's previous payouts before that pale in comparison.

But how does this stack up against Rio Tinto, BHP's largest mining rival on the ASX? Rio was one of the first ASX 200 shares out of the gate this reporting season, delivering its half-year results back on 27 July.

So what did Rio have to say in the dividend department last month?

How do Rio's dividends stack up against BHP?

Well, this might be the reason why investors were talking about the BHP dividend, and not Rio's.

Rio Tinto announced an interim dividend of US$2.67 per share. Unlike last year, the company did not declare a special dividend to go along with it. This dividend represents a nasty 24.7% drop from last year's payout, or around 50% if you include the special dividends.

So where does this leave the Rio Tinto dividend today compared to BHP?

Well, If we take Rio's last final dividend and special dividend with this latest interim dividend, we get a total of $10.47 per share in dividend payouts. This works out to represent a dividend yield of 11.05% on current pricing. That's 10.14% without including the special dividend.

In contrast, BHP's last two dividends (including the latest final dividend) give the miner a dividend yield of 11.34% at current pricing.

So in terms of raw yield, BHP shares are pipping BHP at the present share pricing. But take this with a grain of salt, given the number of moving parts here. It can be fairly concluded that both of these mining giants have a lot to offer investors when it comes to dividend income right now.

Should you invest $1,000 in Allkem right now?

Before you buy Allkem shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Allkem wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

Motley Fool contributor Sebastian Bowen 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.

More on Dividend Investing

Man holding a calculator with Australian dollar notes, symbolising dividends.
Dividend Investing

A 5% yield? Here's the dividend forecast for an ASX 200 powerhouse

Are the generous dividends growing or getting smaller? Let's find out.

Read more »

A male investor sits at his desk looking at his laptop screen holding his hand to his chin pondering whether to buy Macquarie shares
Dividend Investing

This 10% ASX dividend stock is my top pick for immediate income

This business offers a lot of what income investors are looking for.

Read more »

A happy construction worker or miner holds a fistful of Australian dollar notes.
Dividend Investing

Buy Rio Tinto and these ASX dividend shares in May

Analysts expect good yields from these buy-rated shares.

Read more »

A male investor sits at his desk looking at his laptop screen holding his hand to his chin pondering whether to buy Macquarie shares
Dividend Investing

Top broker forecasts this quality ASX 200 dividend share could surge 45%!

A leading broker forecasts outsized gains ahead for this high-yielding ASX 200 dividend stock.

Read more »

A couple sitting in their living room and checking their finances.
Dividend Investing

Beat falling interest rates with these growing ASX dividend shares

Analysts think these shares could be top picks for income investors now interest rates are falling.

Read more »

Gold bars and Australian dollar notes.
Dividend Investing

How these soaring ASX 200 stocks are shaping up to be the dividend gems of 2026

With revenue surging, these ASX 200 stocks may be supersizing their dividends in 2026.

Read more »

Australian notes and coins symbolising dividends.
Industrials Shares

ASX 200 dividend stock reveals next quarterly passive income payout

The ASX 200 dividend stock announced its quarterly results and latest passive income payout.

Read more »

Animation of a man measuring a percentage sign, symbolising rising interest rates.
Dividend Investing

Forget term deposits and buy these ASX dividend stocks in May

Interest rates could be heading lower so consider these shares that analysts rate as buys instead.

Read more »