12 High Yield Fortune 500 Stocks to Buy Now

Page 6 of 6

6. Rio Tinto Group (NYSE:RIO)

Dividend Yield as of June 11: 3.88% 

Rio Tinto Group (NYSE:RIO) engages in exploring, mining, and processing mineral resources worldwide. The company operates through its Iron Ore, Aluminium, Lithium, and Copper segments.

On June 8, Citi lifted its price target on Rio Tinto Group (NYSE:RIO) from £7,600 to £8,100, but maintained a ‘Neutral’ rating on the shares. The revised target indicates an upside of more than 6% from the current share price.

On the other hand, RBC Capital turned bearish on Rio Tinto Group (NYSE:RIO) on June 3 when its analyst Ben Davis downgraded the stock from ‘Sector Perform’ to ‘Outperform’, while also cutting the stock’s price target from £6,400 to £6,300.

RIO had posted YTD gains of over 37% until June 2, and the downgrade was motivated by valuation concerns following the stock’s rally. According to RBC Capital, Rio Tinto’s share price now reflects the “supportive” aluminum market conditions, “resilient” margins in the Pilbara iron ore operations in Australia, and effective execution across the company’s major growth projects.

While the analyst firm remains bullish on the outlook for copper and aluminum, it believes that much of the expected improvement in Rio’s EBITDA and free cash flow is already reflected in its stock price, leaving more room for downside surprises at current valuation levels.

While we acknowledge the potential of RIO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than RIO and that has 100x upside potential, check out our report about the cheapest AI stock.

Click to continue reading and see the 5 High Yield Fortune 500 Stocks to Buy Now.

Disclosure: None. Follow Insider Monkey on Google News.

Page 6 of 6
1281292 - 11759070 - 1