UPDATE: Investors are buzzing as new reports reveal that FTSE 100 giant Rio Tinto has generated staggering returns of nearly 113% since March 2020. This update comes as the company’s stock price has soared, promising lucrative passive income opportunities for those who invested early.
In March 2020, an investment of £10,000 purchased 266 shares at £37.57 each. Since then, Rio Tinto has paid out a total of £25.33 per share in dividends, translating to £6,758 in returns. With the share price now at £54.65, investors are witnessing a remarkable paper profit of £4,530.
This surge in share price and dividends marks a significant moment for passive income investors. The total gain now stands at £11,268, prompting many to consider the future of their investments with Rio Tinto.
Analysts indicate that the stock is currently 52% undervalued, with a fair value estimated at £113.85. With a price-to-earnings ratio of 11.4, significantly lower than its competitors like BHP (15.3) and Antofagasta (32.6), Rio Tinto appears to be a standout opportunity.
Despite the potential risks associated with commodity price volatility, particularly in iron ore and copper, the company remains robust. Recent reports show that Rio Tinto’s underlying EBITDA reached $11.5 billion (approximately £8.7 billion) in H1 2025, with operating cash flow at an impressive $6.9 billion.
In a recent Q3 production update, copper and aluminium output rose by 10% and 6% year-on-year, with iron ore shipments hitting their second-highest level since 2019, further solidifying investor confidence.
Looking ahead, Rio Tinto’s current dividend yield stands at 5.7%, with forecasts suggesting a rise to 5.9% by 2027. If you invested £10,000 today, this could translate into £7,659 in dividends after ten years, assuming reinvestment of dividends, leading to a total worth of £55,066 over 30 years.
While these projections are not guaranteed, the potential for significant passive income is attracting attention. Investors are now keen to explore additional high-yield stocks that appear undervalued, as the market landscape continues to evolve.
As the situation develops, many are asking: Should you invest £1,000 in Rio Tinto now? Industry experts highlight that staying informed on these trends is critical for making wise investment decisions.
Stay tuned for more updates as the market reacts to Rio Tinto’s impressive performance and what it means for future passive income strategies.
