Morningstar expects Rio Tinto's annual payout to rise

Morningstar analysts expect Rio Tinto's RIO.AX annual payout to be 55%, but it could be even higher as the balance sheet remains strong.

The Anglo-Australian miner posted a 43% jump in interim underlying earnings to $6.85 billion on Wednesday, broadly in line with the Visible Alpha consensus estimate.

The company declared an interim dividend of $2.11 per share, its highest in four years.

Morningstar expects Rio to grow volumes in all three of its major commodities — iron ore, copper and aluminium — over the five-year forecast period to 2030.

Seven out of 16 analysts rate the stock "buy" or higher, seven "hold" and two "sell"; the median price target is A$174.00, according to LSEG data.

Shares are up 12.7% year to date.