10 Best FTSE Dividend Stocks To Buy Now

5. Rio Tinto Group (NYSE:RIO)

Dividend Yield as of January 3: 7.42%

Number of Hedge Fund Holders: 30

Rio Tinto Group (NYSE:RIO) is a big player in the global mining scene, involved in everything from exploration to mining and processing minerals. The company works across four main segments – Iron Ore, where they mine iron ore, salt, and gypsum; Aluminium, which covers bauxite mining, alumina refining, and aluminum smelting; Copper, focusing on mining and refining copper, gold, silver, molybdenum, and other by-products; and Minerals, which includes mining borates, titanium feedstock, iron concentrate, diamonds, and even developing battery materials like lithium. It is one of the best FTSE dividend stocks to monitor.

Rio Tinto Group (NYSE:RIO) missed Q3 production estimates but remains confident in its long-term prospects, especially with its $6.7 billion acquisition of Arcadium Lithium. While iron ore production rose 1%, it fell short of expectations, and copper production dipped due to issues at the Kennecott mine. The company maintains its full-year shipping guidance but warns of rising costs due to inflation. However, Rio Tinto Group (NYSE:RIO) is progressing on growth projects like the Rincon lithium plant, Simfer iron ore mine, and Oyu Tolgoi copper mine. Despite the high premium, the Arcadium acquisition is seen as a strategic move to strengthen Rio’s position in the lithium market.

On December 5, RBC Capital Markets lowered its price target for Rio Tinto Group (NYSE:RIO) from £55 to £54 while maintaining a Sector Perform rating. This adjustment follows the company’s investor day, where it extended its 3% annual production growth target to 2033, partly due to lithium projects. Despite the revised price target, RBC expects Rio Tinto Group’s (NYSE:RIO) stock to perform in line with the sector.

According to Insider Monkey’s third-quarter database, 30 hedge funds were long Rio Tinto Group (NYSE:RIO), compared to 29 funds in the earlier quarter. Ken Fisher’s Fisher Asset Management is the largest stakeholder in the company, with 17.5 million shares worth $1.2 billion.