RBC said Vale’s shares have risen about 15% so far this year, slightly ahead of diversified mining peers.
The stock has re-rated faster than rivals BHP Group and Rio Tinto across key valuation metrics despite a recent pullback tied to geopolitical tensions in the Middle East.
According to RBC, Vale’s valuation now implies an iron ore price of about $85 per tonne, compared with roughly $83 for Rio Tinto and about $91 for BHP. The brokerage said that level is about 10% higher than when it upgraded the stock previously.
RBC said shareholder returns remain attractive, estimating Vale’s dividend yield at about 8% for 2026, nearly double the roughly 4.8% average among peers. Lower capital spending and a solid balance sheet support the higher payout, the firm added.
The brokerage also pointed to potential from Vale’s base metals division as a longer-term catalyst, though it said the business remains underappreciated by investors. RBC said an initial public offering of the division could unlock value but recent management commentary suggests the company does not view such a transaction as urgent.
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