Getting latest data loading
X

Request a Call to Trade

In addition to the daily Research emails, I would also like to receive the Accendo Markets Weekly Newsletter and occasional Market Report emails highlighting various trading opportunities.
When you enter your telephone number, we may call or message you occasionally with trading opportunities. You can opt out at any time
Home / Dividends / Rio Tinto

This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.

Rio Tinto

A dividend trading opportunity for you?

Rio Tinto is due to pay a dividend of 319.5p per share/7.2% on Thurs 7 Mar

  • Rio Tinto pays a 319.5p/7.2% dividend. Currently at 4313p (at time of writing).
  • Shares -4% from 2019 highs; +20% from 2019 lows; +15.6% year-to date.
  • All CFD positions held over 4.30pm on Weds, 6 Mar will be paid a dividend at 7:15am on Thurs, 7 Mar.
  • Those using Rio Tinto CFDs receive the dividend 31 days earlier than those using shares.
  • On the day the shares trade ex-dividend the share price tends to drop by the same amount.

Click to enlarge

Trading Rio Tinto – An Example

Let’s say you like Rio Tinto and would like to get the 319.5p/7.2% dividend. You decide to buy exposure to £10,000 worth of Rio Tinto using a CFD, at the current price of 4313p. To do this, you need £2,000.

Shares that go ex-dividend typically fall by the amount of the dividend on the ex-dividend date. Many shares then tend to recover over a period of time, helped by dividends being reinvested, creating a dividend recovery trade opportunity.

Assuming Rio Tinto shares recover to their pre-dividend share price, your profit from the dividend would be £720, from your initial investment of £2,000.

Be aware that the share price could fall or rise, which could mean that you make an overall loss or increased profit on the position. For example, let’s assume that Rio Tinto falls 2% at the same time it pays the dividend. You overall net loss on your £10,000 position would be £200.

This is provided for information purposes only. It should not be taken as a recommendation.

This research is produced by Accendo Markets Limited. Research produced and disseminated by Accendo Markets is classified as non-independent research, and is therefore a marketing communication. This investment research has not been prepared in accordance with legal requirements designed to promote its independence and it is not subject to the prohibition on dealing ahead of the dissemination of investment research. This research does not constitute a personal recommendation or offer to enter into a transaction or an investment, and is produced and distributed for information purposes only.


Accendo Markets considers opinions and information contained within the research to be valid when published, and gives no warranty as to the investments referred to in this material. The income from the investments referred to may go down as well as up, and investors may realise losses on investments. The past performance of a particular investment is not necessarily a guide to its future performance.

Prepared by Michael van Dulken, Head of Research
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.
.