BHP Billiton Ltd. offers a dividend return twice as high as Australia’s one-year bond yield, underpinning the strongest rally in stocks in seven months as the nation’s sovereign debt slumps to the world’s biggest loss.
Rio Tinto Group, the world’s second- largest mining company, bolstered its dividend after reporting a 43 percent gain in second-half profit as prices for iron ore advanced and it beat a cost-cutting target.
BHP Billiton Ltd., the world’s biggest mining company, said first-half profit rose a more-than- expected 31 percent as its iron ore earnings gained and costs declined amid improving global economic growth.
Rio Tinto Group Chief Executive Officer Sam Walsh is charting a course to potentially bolster cash returns to investors in the world’s second-biggest mining company after cutting $2 billion of costs ahead of schedule.
When Rio Tinto Group decided it had to part with Chief Executive Officer Tom Albanese, the second- largest mining company turned to Sam Walsh, whose iron ore unit has generated almost $40 billion in profit in seven years.