1213 GMT Dividend yields from the top 40 miners reached 5% on average last year due in part to a fall in market capitalization, according to PWC. This marked the highest dividend yield in a decade compared to a 2.8% average over the period and was up from 4.3% in 2013. Interestingly, for iron ore majors BHP Billiton Ltd , Rio Tinto PLC , and Vale, the dividend yield was 6%. BHP and Rio together accounted for about a quarter of the Top 40's cash dividends in 2014. PWC, however, noted that the top 40 barely covered dividends in 2014. They borrowed last year to satisfy dividend payments. " This practice isn't sustainable in the long term," PWC notes. Eight of the top 40 had their credit ratings downgraded in 2014 and another 10 were placed on a negative outlook.(alex.macdonald@wsj.com)
