Rio Tinto Ltd (ASX: RIO) and Fortescue Ltd (ASX: FMG) shares have delivered markedly different returns over the last three years.
One of the S&P/ASX 200 Index (ASX: XJO) mining giants has smashed the 24.5% gains posted by the benchmark over the past three years (as at 10 September). The other has delivered far less.
So, which was the better investment?
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Fortescue shares flounder
Well, it wasn't Fortescue.
Three years ago, on 8 September 2023, you could have bought Fortescue shares for $19.40 apiece.
So, for $10,000 you could have 515 shares.
On Thursday, shares were trading for $17.61 each, down 9.2% over three years.
But stockholders wouldn't have done quite that badly.
That's because if you held Fortescue shares for the past three years, you'd also have received the last six fully franked Fortescue dividend payments totalling $4.15 a share. (The final FY 2026 Fortescue dividend will be paid on 29 September.)
If we add that back into the recent share price, then the accumulated value of the shares you bought in September 2023 is now worth $21.76. And the 515 shares you picked up for $10,000 are worth an accumulated $11,207.
So, what about Rio Tinto?
Buying $10,000 worth of Rio Tinto shares
Unlike Fortescue shares, Rio Tinto shares have strongly outperformed over the past three years.
On 8 September 2023, Rio Tinto shares were trading for $111.17 apiece. Meaning you could have bought 89 shares with a $10,000 investment, with $105 in pocket money left over.
On Thursday, shares were changing hands for $179.33 each, up 61.3% in three years.
Investors have also banked significant passive income from the ASX 200 mining stock along the way.
If you owned Rio Tinto shares for the past three years, you would have received, or will shortly receive, the past six fully franked dividend payments. (The interim 2026 Rio Tinto dividend will be paid out on 24 September.)
All told those six Rio Tinto dividends come out to a rounded $19.18 a share.
If we add that back into the recent share price, then the accumulated value of the Rio Tinto stock you picked up in September 2023 is now worth $198.51 a share.
And the 89 shares you bought for $10,000 are worth an accumulated $17,667.
So, for this time period at least, Rio Tinto clearly takes the prize over Fortescue shares.
How about in 2026?
As of Thursday, the ASX 200 has gained 0.7% year to date.
Over this same time, Rio Tinto shares have gained 21.5% and paid two dividends.
And Fortescue shares have tumbled 20.5% and paid two dividends.
