RE:RE:Rio Tinto dig ups monster dividendA great dividend is nice...but if Rio doesn't start investing in building pipeline of future resources....I do believe this is going to be called out by analysts accordingly. I would think a company like Rio has enough smart people to understand they will be judged accordingly....and just giving so much money back to shareholders---who then have to pay taxes on said dividends---actually might not be such a great thing. Investors give money to Rio to grow their money and I would think most of them would like a stable 6-8% annual dividend and to invest other gains back into the company (ie - acquisitions, capex , etc)....not turning it over to them to incur huge taxes on dividends!
it reeks of a company that doesn't know how to use investors money effectively when they just turn so much of it back to them ...in essence saying..." sorry ...we have nothing out there that we know about in our line of business to give a 15-20% IRR"