Rio Tinto is the second largest mining company in the world. They also offer a great dividend.

Overview

Rio Tinto is the second largest commodities & resources company in the world behind Glencore employing over 45,000 People. The company is listed on the ASX and LSE under the ticker 'RIO". With commodity prices skyrocketing in 2022 Rio Tinto will likely see the benefit of higher prices, which will in turn benefit shareholders as well, given that last year Rio's dividend was 13.6% (Based on 2021 share prices). This year so far the company has paid out £3.52 with more due later in the year. It is possible investors can expect similar dividend numbers this year.

Financials

Given the size of Rio Tinto, the numbers are solid. 2021 revenue was $63.5bn (up 42% YoY) with profit after tax a record $22.5bn (up 116.3% YoY). Diluted EPS was strong at $12.95. Looking at the balance sheet total assets amounted to $102.9bn of which $12.8bn was cash and $64.9bn was equipment and property. Total liabilities were good at $46.3bn, leaving Rio Tinto's net positive 56.6%. This gives them a L/A ratio of 43.06%. In comparison, Glencore sits at 70.4%.

Technicals

Rio shares are currently down just a mere 3% YTD, but are down 31% from thier highs. Looking at the chart it is possible that shares could fall further toward the £38 region given the long-term ascending triangle pattern dating back to 2016. That being said, half-year results will be due in the coming weeks and if Rio Tino does strong then they could move way higher. Initial support sits at £44.11, followed by the £42.44 region. RSI currently reads 37. Towards the upside, resistance sits at £53.00 followed by £57.00. A break above here could see the shares testing the highs at £65-£67 region, though this is unlikely in the short/medium term.

Summary

Overall Rio Tinto is very well placed. They're offering a record double-digit dividend, and are nearly flat for the year whereas most other shares are down. They've also continued to maintain a solid income statement and balance sheet. Recession risks do weigh but high commodity prices will be keeping profit margins strong and therefore ensuring long-term sustainability.