Alternative to RioTinto

[floyd3592]

Was going to buy RIO to add to my HYP last month but didn't do it. I see that the share price has risen somewhat since then so it's putting me off a bit. Whilst this might sound like me trying to time the market are there any shares similar to RIO in the same sector I could be looking at as an alternative?

[moorfield]

I bought some RIO as a new addition to my portfolio last week at a yield of 5.3% - that's above benchmark (CTY, 4.5%) good enough for me.

Candidates from the Basic Materials industry are thin on the ground, and RIO is already the biggest kid in that playground.

[tjh290633]

It all depends what takes your fancy. I hold BHP, RIO and S32. I did hold AAL but switched from them into BLT (as it then was) when AAL stopped their dividends. You pays your money.....

TJH

[Arborbridge]

As a general comment, I wouldn't be put off by an increase in price provided the yield still fits. One could argue that this is comfirmation that you've made a good choice - and to buy in to a rising price rather than a falling one, is a happier position in which to be.

Looking at the chart for RIO just now, I might even buy some now and some later - the second tranche to take a gamble on whether the price falls back a little or not. Let's face it, it won't make much difference either way and in two years' time you probably won't even remember!

NB - I also notice the forecast for RIO's eps and div are falling for next year. This is probably an occupational hazard with holes in the ground - the volatility. Worth thinking about, since if you are already worried about the yield (which seems respectable to me) there's a chance the payout will be worse next year.

Arb.

[idpickering]

As a general comment, I wouldn't be put off by an increase in price provided the yield still fits. One could argue that this is comfirmation that you've made a good choice - and to buy in to a rising price rather than a falling one, is a happier position in which to be.

Arb.

I very much agree with Arb on that. Back to the OP though, I hold both Rio Tinto and BHP Billiton, to spread my risk between them, both equally weighted in capital value terms. I'm not adding to either currently as I have enough already.

Ian.