[miningmx.com] – RIO Tinto reported a 51% decline in full-year profit and said it would scrap its progressive dividend policy as commodity prices plunged amid slowing growth in China, said Bloomberg News.
Rio’s payout in 2016 won’t be less than $1.10 a share, after it held the 2015 dividend at $2.15 a share, it said. It joins rivals Vale SA and Glencore in trimming or abandoning dividend payments, said the newswire.
“With the continuing uncertain market outlook, the board believes that maintaining the current progressive dividend policy would constrain the business and act against shareholders’ long-term interests,” said chairman Jan du Plessis. “We are therefore replacing the progressive dividend policy with a more flexible approach.”
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