MENU

Why the Rio Tinto Limited (ASX:RIO) share price is falling today

Rio Tinto Limited (ASX: RIO) shares are down 3.5% to $78.77 at the time of writing off the back of its half-year results presentation and the announcement of a share buy-back programme.

According to today’s ASX release, Rio will commence an additional US$1 billion share buy-back of Rio plc’s ordinary shares – in addition to on-market buy-backs in place from September last year and February 2018.

If Rio investors seem ambivalent about the buyback, Rio’s interim dividend of $2.2 billion should sweeten the deal, with Rio’s half-year results showing robust financial performance, EBITDA of $9.2 billion, and a dividend of roughly $1.70 per share.

Sentiment may also have been knocked by a 38% decrease in free cash flow and a 34% increase in expenditure with issues resolving a tax dispute with the Mongolian government also playing on investors’ minds.

Peers like BHP Billiton Limited (ASX: BHP) are also in the red today, down 1.8% to $34.42 at the time of writing, as oil producers Woodside Petroleum (ASX: WPL) and Oil Search Limited (ASX: OSH) shares react to oil prices tumbling overnight.

Even blue-chip stocks like Rio can have bad days, but that doesn't mean they're not a solid investment.

Find out our top 3 ASX Blue Chips To Buy In 2018 here

For many, blue chip stocks mean stability, profitability and regular dividends, often fully franked..

But knowing which blue chips to buy, and when, can be fraught with danger.

The Motley Fool’s in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool’s Top 3 Blue Chip Stocks for 2018."

Each one pays a fully franked dividend. Each one has not only grown its profits, but has also grown its dividend. One increased it by a whopping 33%, while another trades on a grossed up (fully franked) dividend yield of almost 7%.

The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand – and how quickly the share prices of these companies moves – we may be forced to remove this report.

Click here to claim your free report.

Motley Fool contributor Carin Pickworth has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

5 ASX Stocks for Building Wealth After 50

I just read that Warren Buffett, the world’s best investor, made over 99% of his massive fortune after his 50th birthday.

It just goes to show you… it’s never too late to start securing your financial future.

And Motley Fool Chief Investment Advisor Scott Phillips just released a brand-new report that reveals five of our favourite ASX stocks for building wealth after 50.

– Each company boasts strong growth prospects over the next 3 to 5 years…

– Most importantly each pays a generous dividend, fully franked.

Simply click here to find out how you can claim your FREE copy of “5 ASX Stocks for Building Wealth After 50.”

See the stocks now