{"id":58824,"date":"2026-06-08T23:31:12","date_gmt":"2026-06-08T23:31:12","guid":{"rendered":"https:\/\/www.europesays.com\/britain\/58824\/"},"modified":"2026-06-08T23:31:12","modified_gmt":"2026-06-08T23:31:12","slug":"are-fortescue-or-rio-tinto-shares-the-better-buy","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/britain\/58824\/","title":{"rendered":"Are Fortescue or Rio Tinto shares the better buy?"},"content":{"rendered":"\n

Fortescue Ltd (ASX: FMG<\/a>) and Rio Tinto Ltd (ASX: RIO<\/a>) are two of the biggest mining<\/a> shares on the ASX.<\/p>\n

Both give investors exposure to iron ore<\/a>, both can pay large dividends<\/a>, and both are trying to position themselves for the next phase of resources demand.<\/p>\n

But they are not the same investment.<\/p>\n

Fortescue offers a larger forecast dividend yield today, while Rio Tinto gives investors a broader commodity mix and, in my view, a more balanced long-term opportunity.<\/p>\n

So, which one would I buy?<\/p>\n

\"Cheerful<\/p>\n

Image source: Getty Images<\/p>\n

The case for Fortescue shares <\/p>\n

Fortescue remains one of the ASX’s great mining success stories.<\/p>\n

The company built a world-class iron ore business in the Pilbara and has rewarded shareholders handsomely over the years when iron ore prices have been strong.<\/p>\n

According to CommSec, consensus estimates point to earnings per share<\/a> of $1.73 in FY26 and $1.42 in FY27. Based on the current share price of $20.47, that puts Fortescue on around 12 times FY26 earnings and 14 times FY27 earnings.<\/p>\n

But the main attraction today is income. Dividend estimates sit at $1.19 per share in FY26 and 94 cents in FY27. That implies forward dividend yields of approximately 5.8% and 4.6%.<\/p>\n

Those are attractive numbers, particularly for investors looking for resources income.<\/p>\n

I also think it is worth noting that Fortescue is no longer only talking about iron ore and green energy. It has turned more attention to copper, which could be a smart move if the company can build meaningful exposure over time.<\/p>\n

Copper should benefit from electrification, grid investment, data centres, renewable energy, and industrial demand. So, I like the direction of travel.<\/p>\n

The challenge is that Fortescue remains highly exposed to iron ore today. If iron ore prices weaken, earnings and dividends can move quickly. That does not make it a bad investment, but it does make the income outlook more cyclical<\/a> than the headline yield might suggest.<\/p>\n

The case for Rio Tinto shares <\/p>\n

Rio Tinto is also heavily exposed to iron ore, but I think it offers a broader and more attractive long-term mix.<\/p>\n

CommSec’s consensus estimates point to earnings per share of $11.88 in FY26 and $12.38 in FY27. With the share price around $185.59, that puts Rio Tinto on roughly 16 times FY26 earnings and 15 times FY27 earnings.<\/p>\n

Dividend estimates are $6.54 per share in FY26 and $6.81 in FY27. That implies forward yields of approximately 3.5% and 3.7%.<\/p>\n

Those yields are lower than Fortescue’s, but I do not think yield alone should decide this comparison.<\/p>\n

Rio Tinto has exposure to iron ore, copper, aluminium, lithium, and other materials tied to global industrial growth and the energy transition. That broader commodity base is the main reason I prefer it.<\/p>\n

Iron ore may remain a major profit driver, but I like miners that have more than one path to create value. Rio Tinto has the balance sheet<\/a>, project pipeline, and global asset base to keep investing across several important commodities.<\/p>\n

Copper is particularly important to me. The world will likely need more copper over the coming decades, and building new supply is not easy. Rio Tinto’s copper exposure gives it a valuable long-term growth angle that Fortescue is still trying to develop.<\/p>\n

Which would I buy? <\/p>\n

I would choose Rio Tinto shares.<\/p>\n

Fortescue’s yield is attractive, and I can see why income investors may prefer it. If iron ore prices remain supportive, Fortescue can continue to generate strong cash flow and dividends.<\/p>\n

But Rio Tinto is the better buy for me because it offers a more diversified resources exposure.<\/p>\n

The valuation is not demanding, the dividend yield is still useful, and the business has more ways to benefit from the long-term demand for critical materials. I also think its copper exposure gives it a stronger position for the next decade.<\/p>\n

Fortescue’s copper ambitions are worth watching, but Rio Tinto already has a wider base to work from.<\/p>\n","protected":false},"excerpt":{"rendered":"Fortescue Ltd (ASX: FMG) and Rio Tinto Ltd (ASX: RIO) are two of the biggest mining shares on…\n","protected":false},"author":2,"featured_media":58825,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[20718],"tags":[12991,23473],"class_list":["post-58824","post","type-post","status-publish","format-standard","has-post-thumbnail","category-rio-tinto","tag-rio-tinto","tag-trending"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@UnitedKingdom\/116717098338437075","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/posts\/58824","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/comments?post=58824"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/posts\/58824\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/media\/58825"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/media?parent=58824"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/categories?post=58824"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/tags?post=58824"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}