Rio Tinto Ltd (ASX: RIO) shares were on form on Thursday.
The mining giant's shares ended the day 2% higher at $168.55.
It seems that many in the market were expecting Rio Tinto to release a strong full-year result after the market close.
So, how did it perform and what does this mean for the latest Rio Tinto dividend? Let's find out.
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What did Rio Tinto report?
For FY 2025, Rio Tinto reported underlying EBITDA of US$25.4 billion. This was up 9% year-on-year, supported by an 8% uplift in copper equivalent production and disciplined cost control. Operating cash flow rose 8% to US$16.8 billion.
Underlying earnings were steady at US$10.9 billion, even after taxes and government royalties of US$10.4 billion. Profit after tax attributable to shareholders came in at US$10 billion.
Copper was the standout performer, with underlying EBITDA more than doubling to US$7.4 billion, reflecting higher production at Oyu Tolgoi and stronger prices. Aluminium & Lithium EBITDA rose 29% to US$4.6 billion, while Iron Ore remained highly profitable despite lower prices.
Importantly, strong cash generation allowed the company to both fund US$11.4 billion of capital investment and maintain shareholder returns.
The Rio Tinto dividend
The Rio Tinto board elected to declare a fully franked final dividend of US$2.54 per share. This is up from US$2.25 per share previously.
However, for FY 2025, its total dividends were flat year-on-year at US$4.02 per share.
In total, Rio Tinto will return US$6.5 billion to shareholders, representing a 60% payout ratio of underlying earnings. Notably, this marks the tenth consecutive year the miner has paid its ordinary dividend at the top end of its 40% to 60% payout range.
For Australian investors, using the current exchange rate, the full-year dividend of US$4.02 equates to approximately A$5.69 per share.
Based on its closing price of $168.55, this equates to a fully franked dividend yield of around 3.4%.
Commenting on the dividends, Rio Tinto's chief executive, Simon Trott, said:
Our strong cash flow and balance sheet enable us to sustain a 60% payout ratio with a $6.5 billion ordinary dividend, making it the tenth consecutive year at the top end of the range.
When will the dividend be paid?
It won't be too long until Rio Tinto's shares go ex-dividend.
That is scheduled to take place early next month on 5 March. After which, eligible shareholders can look forward to receiving the Rio Tinto dividend the following month on 16 April 2026.
