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
The post Rio Tinto (ASX:RIO) share price within 2% of all-time high appeared first on The Motley Fool Australia. –

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%.

The post Rio Tinto (ASX:RIO) share price within 2% of all-time high appeared first on The Motley Fool Australia.

Should you invest $1,000 in Rio Tinto right now?

Before you consider Rio Tinto, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Rio Tinto wasn’t one of them.

The online investing service he’s run for nearly 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 are better buys.

*Returns as of May 24th 2021

More reading

Behind the Nearmap share price surge, upgrades for Rio and BHP. Scott Phillips on Nine’s Late News

Why the Fortescue (ASX:FMG) share price has rallied 6% in the last week
2 high quality ASX dividend shares with very big yields

Are the 10 highest paid ASX 200 CEOs worth their paypackets?

Why is the Mineral Resources (ASX:MIN) share price up 4% today?

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.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!