From the SMH, apparently following ECBQE:
One of the immediate beneficiaries should be mining giant Rio Tinto, according to analysts at Societe Generale. The mining company will attract investors looking for high-yielding stocks as the central bank’s QE program weighs down bond yields, Societe Generale’s Roland Kaloyan and Kevin Redureau said.
The dual-listed miner is forecast to pay nearly 6 per cent dividend yield on the ASX, and 5.1 per cent on the London Stock Exchange.
Back in Australia, investment bank Citi today upgraded the price target for Rio Tinto to $71 per share, up from $67, while maintaining its “buy” recommendation.
A yield stock is one in which solid dividends combine with the defensive qualities of stable equity, low earnings volatility and counter-cyclicality.
RIO is a highly cyclical miner with a history of big profit swings whose largest commodity is caught in an historic bear market. It is the antithesis of a yield stock.
