Dividend Kings

The Dividend Kings theme explores the equity research and video content we have for stable dividend paying companies

UK stocks that meet the following criteria:

Latest and forecast Dividend Yield greater than 3%  |  5-year net Dividend Growth Rate CAGR greater than 5%  |  Latest and forecast Dividend Coverage greater than 1.8x  |  Dividends consistently paid for at least the last 5 years 


 

Dividend Kings


The Dividend Kings theme explores the equity research and video content we have for stable dividend paying companies

UK stocks that meet the following criteria:

Latest and forecast Dividend Yield greater than 3%  |  5-year net Dividend Growth Rate CAGR greater than 5%  |  Latest and forecast Dividend Coverage greater than 1.8x  |  Dividends consistently paid for at least the last 5 years 

Latest Content

Rio Tinto

Strong H1 results translate into record dividends (and more buy-backs)

Rio Tinto reported healthy H1 17 results, with support coming from all divisions, except for copper. Sales were up 25% yoy (and 5.7% hoh) to $19bn, with iron ore and coal being the biggest beneficiaries of the pricing euphoria. Similar to peers, profit improvements were stellar, with adjusted EBIT galloping 163% yoy (and 61% hoh) to $6.5bn – wherein pricing improvements along with continuation of cost optimisation clearly dwarfed the impact of weak volumes, high inflation and energy costs, and unfavourable forex movements. In fact, Rio managed to achieve its $2bn cost improvement target for 2016-17 a good six months ahead of schedule. However, copper continued to remain in a tight spot – impacted by lower grades at Oyu Tolgoi, no contribution from Grasberg due to issues with the Indonesian government related to new mining regulations and the strike impact of Escondida (which affected Rio’s income from associates and JVs). Net attributable profit, even after forex losses of $455m (though much behind our estimates), came in at $3.3bn (+93% yoy; +14% hoh). Mirroring the operating improvements, even reported OCFs came in much stronger (+95% yoy; +21% hoh) at $6.3bn, which along with conservative capital spend of $1.8bn helped further reduce (19% vs. 2016 end) net debt to $7.6bn. H1 also witnessed the Australian thermal coal asset sale finally coming to a closure, after a fiercely fought bidding war between Yancoal and Glencore. Post a series of counter offers, Rio finally decided to go ahead with Yancoal’s offer of $2.7bn, – o/w $2.45bn would be payable in cash on completion while, out of the remaining $240m of unconditional royalty payments, $200m would be received before 2018 end. Management expects this transaction to close during Q3 17. Taking into consideration the strong operating performance, which would be further supported by the Australian thermal coal asset sale proceeds, Rio announced a record interim dividend of $1.1 per share. Furthermore, after announcing a $0.5bn share buy-back programme in February 2017, the group announced another $1bn of buy-backs. Management guides 2017 capex of $5bn, followed by $5.5bn in both 2018 and 2019.

  • 21 Aug 17
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Research Tree aggregates the latest equity research from 367 analysts at 31 city brokerages and research houses in one platform, giving users full access to the latest valuations, target prices, analysis, and financial models on the companies they care about, in real-time.