Advertisement

If you'd invested in: Rio Tinto and Tate & Lyle

Rio Tinto, the world’s second-largest mining firm, recently declared a record dividend, while experts expect Tate & Lyle's earnings per share to decline.

If only...

893_Good

Rio Tinto (LSE: RIO) is the world's second-largest mining firm. In February this year the firm declared a record final dividend of $1.80 per share and unveiled a $1bn share buyback after higher commodity prices lifted full-year profit. Underlying earnings for the year to 31 December jumped 69% to $8.63bn from a year earlier, broadly in line with analysts' estimates of $8.74bn. Earlier this month it also reported a 5% rise in its first-quarter iron-ore shipments and kept its forecast for aluminium production steady, despite new US sanctions on its Russian partner Rusal.

Be glad you didn't buy...

893_Bad

Tate & Lyle (LSE: TATE) produces ingredients for the food, beverage, and agriculture industries. The firm, which sold its sugar-refining business in 2010, has had a few difficult years amid a price war in the sucralose market and posted three profit warnings between 2014 and 2015. In November last year it reported a 26% increase in first-half profits. Sales of new products are now expected to hit $200m in 2020, up from $69m in 2014. Despite this, analysts are expecting the company's earnings per share to decline over the next two years as the tailwind from weaker sterling vanishes.

Advertisement
Advertisement

Recommended

Share tips of the week
Share tips

Share tips of the week

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
17 Jan 2020
How the fear of death affects our investment processes
Investment strategy

How the fear of death affects our investment processes

Many of our investment decisions are driven by one simple fact: the knowledge that, one day, we will be dead. Here, in an extract from his new book, J…
2 Jan 2020
Share tips: eight stocks that should deliver robust returns
Share tips

Share tips: eight stocks that should deliver robust returns

Ryan Ermey of US publication Kiplinger’s Personal Finance chooses his favourite stocks for the next decade, which should be able to grow for years.
28 Dec 2019
The good investments of the 2010s – and the bad
Stockmarkets

The good investments of the 2010s – and the bad

John Stepek takes a look back on which investments did well and which did badly in the decade that’s about to come to an end.
26 Dec 2019

Most Popular

BP has slashed its dividend – and markets love it
Income investing

BP has slashed its dividend – and markets love it

BP has bowed to the inevitable and cut its dividend in half – and its share price promptly rose. John Stepek explains what it means for shareholders …
4 Aug 2020
Listed companies are dying out, and that could have serious consequences
Stockmarkets

Listed companies are dying out, and that could have serious consequences

Private equity is taking over from public stockmarkets as the biggest provider of capital to companies. That’s bad for investors and bad for society a…
3 Aug 2020
Can the recent rally in sterling continue?
Sponsored

Can the recent rally in sterling continue?

A "double top"  – a very recognisable pattern – is forming in in the US dollar. Dominic Frisby explains what it is, and what it could tell us about st…
3 Aug 2020