On the last day of July, we got an ASX earnings season sneak peek when mining giant Rio Tinto Ltd (ASX: RIO) released its half-year earnings results for the six months to 30 June 2024.
As we covered at the time, these earnings contained some decent numbers, with Rio reporting a 3% rise in underlying earnings before interest, tax, depreciation and amortisation (EBITDA) to US$12.09 billion.
This resulted in Rio declaring that its interim dividend for 2024 would come in at US$1.77 per share, which is flat compared to what investors enjoyed over the same period last year.
The fact that Rio maintained its interim dividend effectively means that the miner's current trailing dividend yield of 5.77% (at current pricing) remains an accurate representation of what Rio shareholders will enjoy in dividend income going forward. That also factors in the final dividend of US$2.58 ($3.93) per share that was paid out back in April).
5.77% is obviously a compelling dividend yield, particularly when we consider that Rio's dividend tends to come with full franking credits attached as well. If we include the value of those franking credits, that yield grosses up to a hefty 8.24%.
But if you wish to secure this latest dividend payment from Rio Tinto, time is rapidly running out. That's because the ex-dividend date for this payment is quickly approaching.
How to secure the latest Rio Tinto dividend
Whenever an ASX share announces a dividend payment for shareholders, it must also nominate an ex-dividend date. This is the date that draws a line in the sand over which Rio Tinto investors receive said dividend.
Put simply, only shareholders who own that company's shares as of the market close on the day before the company goes ex-dividend will be eligible to receive the dividend payment. If an investor buys the shares on or after the ex-dividend date, the seller will get the dividend instead.
As such, we normally see a sizeable share price drop when a company trades ex-dividend, reflecting this loss of value for new investors.
In Rio Tinto's case, the ex-dividend date for this upcoming interim dividend has been set for this Thursday,15 August. That means that the last day you can buy Rio Tinto shares with the rights to this latest dividend attached is this Wednesday, 14 August.
If Rio shares aren't in your brokerage account by the close of trading that day, you'll miss out this time.
Eligible Rio investors will then see this dividend payment arrive next month on 26 September. If those eligible investors choose the optional dividend reinvestment plan (DRP) by 5 September, they can receive additional Rio shares instead of the traditional cash payment.
