No Discount on Rio Tinto’s DRP: What This Means for Shareholders

• Interim dividend of USD 1.48 per share fully franked at 30%
• DRP share price set at AUD 121.968687 with no discount
• Share allocation date scheduled for 2 October 2025
• Dividend payments available in multiple currencies based on shareholder location
• DRP shares to be purchased on-market post dividend payment

Rio Tinto Updates Dividend Reinvestment Plan Details

Rio Tinto Limited has provided an important update to its Appendix 3A.1 announcement concerning its interim dividend for the six months ending 30 June 2025. The company confirmed a fully franked dividend of USD 1.48 per ordinary share, reflecting a corporate tax rate of 30%. This update specifically discloses the dividend reinvestment plan (DRP) share price and the timing for share allocation, key details that influence shareholder returns and participation decisions.

DRP Price and Allocation Timing

The DRP price has been set at AUD 121.968687, with shares to be allocated on 2 October 2025. Notably, Rio Tinto will acquire these shares on-market shortly after the dividend payment date of 25 September 2025. This approach means there is no discount applied to the DRP price, and the final price reflects the average of market transactions, which could introduce slight variability. The absence of a discount aligns with Rio Tinto’s strategy to maintain shareholder value while offering a straightforward reinvestment option.

Currency Flexibility for Shareholders

Dividend payments will be made in US dollars by default but can be received in Australian dollars, British pounds, or New Zealand dollars depending on the shareholder’s nominated bank account or domicile. Exchange rates were fixed as of 16 September 2025, seven business days before payment, ensuring transparency in currency conversion. This multi-currency arrangement caters to Rio Tinto’s diverse global shareholder base, facilitating smoother dividend receipt across key markets.

Implications for Investors

The update clarifies that shareholders who do not opt into the DRP will receive their dividend in cash, while those participating will have their dividends reinvested at the announced market-based price. The full franking of the dividend enhances its attractiveness, especially for Australian investors benefiting from franking credits. The timing and pricing details provide investors with the necessary information to make informed decisions about dividend reinvestment ahead of the allocation date.

Overall, Rio Tinto’s update reflects a disciplined approach to shareholder returns, balancing cash payments with reinvestment opportunities without diluting share value through discounted DRP pricing.

Bottom Line?

As Rio Tinto finalises its DRP share allocations, investors will watch closely for market price movements and currency impacts on dividend returns.

Questions in the middle?

• Will the market price at allocation closely match the announced DRP price?
• How might currency fluctuations after the fixed exchange date affect dividend receipts?
• What level of shareholder participation in the DRP can Rio Tinto expect this cycle?