Mining giants squeeze dividends with an eye toward funding growth

Lower Dividends Amidst Declining Mineral Prices: Major mining companies like Rio Tinto, Anglo American, and Glencore are reporting their lowest dividends in years due to falling mineral prices and high capital expenditures on development projects. Analysts predict that payouts will remain depressed without a rise in commodity prices.

Capital Intensive Development Projects: The large miners are currently in a capital-intensive phase, focusing on significant growth projects such as BHP's Jansen potash mine and Rio Tinto's iron ore investments, which are expected to further limit their ability to return cash to shareholders.