ASX mining shares: Do Rio Tinto or Fortescue shares offer a bigger dividend yield today?

Rio Tinto's dividend beat BHP, but what about Fortescue?

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Key points

  • Rio Tinto offers a higher dividend yield compared to BHP, but Fortescue surpasses both.
  • While Fortescue is primarily focused on iron ore, Rio and BHP have more diversified mining operations.
  • Despite Fortescue's seemingly attractive yield, its dividends are highly dependent on volatile iron ore prices, requiring cautious investment consideration.

Earlier this week, we compared the dividend chops of two of the ASX's largest and most prominent mining shares.

When we put Rio Tinto Ltd (ASX: RIO) stock head-to-head against BHP Group Ltd (ASX: BHP) shares, Rio emerged on top, offering a meaningfully larger dividend yield at current pricing.

Saying that, we must acknowledge now, as we did then, that divided yields of this nature affect the past, not the future.

Even so, it's all we have to go off, so that trailing dividend yield is still worth a look.

With Rio's current supremacy over BHP in the income stakes now established, let's compare it to that other ASX mining share and giant of the Australian resources sector, Fortescue Ltd (ASX: FMG).

When compared to BHP or Rio, Fortescue is a cat with a slightly different coat. All three ASX mining shares have massive operations in iron ore, with each owning large mines that extract the raw material used to make steel.

However, BHP and Rio are both at least somewhat diversified, too. BHP also plays in the copper arena, as well as having operations in nickel, potash, and metallurgical coal. Rio also mines copper, as well as aluminium, titanium, lithium, and diamonds, amongst other, smaller operations.

Saying all of that, iron ore remains, by far, the most important mineral for both BHP and Rio, making up the lion's share of both companies' profits.

ASX mining shares: Does Fortescue beat Rio Tinto for dividends?

When it comes to Fortescue, though, it's all about iron ore. Although Fortescue's founder, Andrew Forrest, has been investing in green hydrogen and ammonia, those activities contributed just US$81 million to the total of US$15.54 billion in revenues that Fortescue brought in over the 2025 financial year. We don't even mention the bottom line. The rest of the company's revenues were almost entirely made up of iron ore sales.

But let's get down to the dividends.

As we dove into on Monday, Rio Tinto paid out a final dividend in April, worth $3.71 per share, and an interim dividend in September, worth $2.22 per share. Both payments came with full franking credits attached.

At the current Rio share price, these give this ASX mining share a trailing dividend yield of 4.59%.

Like Rio, Fortescue has also paid out two dividends over 2025, as is its annual habit. Investors received a final dividend worth 50 cents per share in March, and an interim dividend worth 60 cents per share in September. Both payments also came fully franked. At the current Fortescue (at the time of writing) share price of $19.94, this gives this ASX mining share a trailing dividend yield of 5.52%.

Foolish Takeaway

As you can see, Fortescue is the clear winner when it comes to dividend yields on display today. However, as we alluded to earlier, a company's dividend yield affects the past, not the future. There is no guarantee that buying Fortescue stock today will result in a 5.52% dividend return over the coming 12 months and beyond.

Like all ASX mining shares, Fortescue's dividends are inherently unreliable, as the company's profits depend entirely on what the price of iron ore is doing. As such, investors chasing that lofty yield need to tread carefully.

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 recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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