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Alternative to RioTinto
Posted: February 13th, 2019, 9:55 am
by 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?
Re: Alternative to Rio Tinto
Posted: February 13th, 2019, 10:02 am
by 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.
Re: Alternative to Rio Tinto
Posted: February 13th, 2019, 10:04 am
by 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
Re: Alternative to RioTinto
Posted: February 13th, 2019, 10:29 am
by 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.
Re: Alternative to RioTinto
Posted: February 13th, 2019, 10:50 am
by idpickering
Arborbridge wrote: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.