Rio Tinto to pay $9bn dividend for 2020

Rio Tinto

Rio Tinto announced it will pay a record $9billion dividend to shareholders for 2020.

The mining company reported a 20% rise in underlying profit to $12.4billion.

They will pay out a final dividend of $5billion plus a special dividend of $1.5billion. This brings its total 2020 payout to $9billion, or 557 US cents per share, the biggest in the company’s 148-year history.

Rio Tinto chief executive, Jakob Stausholm, said: “It has been an extraordinary year – our successful response to the COVID-19 pandemic and strong safety performance were overshadowed by the tragic events at the Juukan Gorge, which should never have happened.

“During 2020, the agility and resilience of the business and our employees, coupled with strong commodity prices, enabled us to deliver underlying EBITDA of $23.9 billion and Return on Capital Employed of 27%. As a result, the board has approved a total dividend of 557 US cents per share including a special dividend of 93 US cents per share, representing a 72% full year pay-out ratio, which builds on our five-year pay-out track record.

“My new executive team and wider leadership of the company are all committed to unleashing Rio Tinto’s full potential. We will increase our focus on operational excellence and project development and strengthen our ESG credentials. 

“Working closely with the board, we must earn the right to become a trusted partner for Traditional Owners, host communities, governments and other stakeholders but we all recognise that this will require sustained and consistent effort.

“Safe and well-run operations, together with world-class assets, great people, capital discipline and a strong balance sheet, leave Rio Tinto well placed to generate superior returns for shareholders, invest in sustaining and growing our portfolio, and make a broader contribution to society.”

Read the full report for their 2020 results here.

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