5 Best European Dividend Stocks to Buy Now

3. Rio Tinto Group (NYSE:RIO)

Forward Dividend Yield: 12.42%

Number of Hedge Fund Holders: 24

Rio Tinto Group (NYSE:RIO) is a London, UK-based diversified mining company that has the distinction of being the second biggest mining entity in the world. The global transition towards lower greenhouse gas emissions will provide the company with long-term secular trends.

Rio Tinto Group (NYSE:RIO) offers an attractive dividend yield of 12.42% as of October 6, translating into an annual payout of $6.84 per share. On September 1, Rio Tinto Group (NYSE:RIO) closed an agreement to acquire Turquoise Hill Resources Ltd. (NYSE:TRQ) for $3.3 billion. The acquisition will provide the company with complete ownership over the world’s biggest copper and gold deposits located in Mongolia. In the future, copper is set to gain more prominence as it is an integral component in electric vehicles (EVs) and their charging stations. Copper is also utilized widely in other renewable energy infrastructures as governments around the world are aggressively working on lowering greenhouse gas emissions.

For the first half of 2022, Rio Tinto Group (NYSE:RIO) reported a robust balance sheet with a net cash balance of $300 million. The company also posted an attractive return on capital employed of 34% with an EPS of $5.33. Since 2014, Rio Tinto Group (NYSE:RIO) has consistently outperformed its peers in terms of returns, making analysts consider the company one of the best European stocks.

As of Q2 2022, Rio Tinto Group (NYSE:RIO) was held by 24 hedge funds.