Rio Tinto Ltd (ASX: RIO) is one of the biggest dividend payers on the Australian share market.
In recent years, the mining giant has shared billions of dollars of profits with its lucky shareholders.
The good news is that this looks set to be the case again this year thanks to strong copper and iron ore prices.
For example, according to a recent note out of Goldman Sachs, its analysts are expecting the miner to pay a fully franked US$4.40 (A$6.33) per share dividend in FY 2023.
So, with Rio Tinto shares currently changing hands for $123.66, this will mean an attractive 5.1% dividend yield for investors over the next 12 months.
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$50,000 of retirement income from Rio Tinto shares
If you wanted to generate $50,000 of retirement income from Rio Tinto shares, it would take a substantial investment.
Based on its forecast dividend for FY 2023, you will need to have 7,899 shares in your portfolio to receive the desired amount of income.
However, with a share price in the $120s, you will be looking at an investment of approximately $980,000 to acquire this number of Rio Tinto shares. Few people are in a position to be able to do this, unfortunately.
But never say never. In this article, I laid out a plan for how I would grow my wealth to $1 million in 15 years.
After which, once you have achieved your investment goal, you have the option of switching your investment focus to income and buying ASX shares that provide 5% yields, such as Rio Tinto, to generate $50,000 of retirement income each year.
The key is having a clear strategy and sticking with it over the years.
