BUZZ-View from the buyside: Old Mutual's Buxton sticking with Rio Tinto

** Old Mutual (Other OTC: ODMTY - news) fund manager Richard Buxton bullish on Rio Tinto despite iron ore price hitting five-year low. Chart: http://link.reuters.com/byd92w

** Benchmark iron ore price at a five-year low of $80.50 per tonne over worries of a supply glut.

** Rio Tinto (Xetra: 855018 - news) most exposed of the four biggest FTSE 100 miners to falling prices, with 75 pct of revenues from iron ore or aluminum. Chart: http://link.reuters.com/qud92w

** But Buxton, who has Rio Tinto as a 4 pct holding in his 1.5 bln pound ($2.46 bln) Old Mutual UK Alpha fund, said the prospect of a dividend hike in 2015 outweighed fear over prices.

** "It is a low-cost producer that will still make good returns even below today's price," he said.

** "This has always been a story for next year: in 2015 we should see a material increase in the return of cash to shareholders - that is what I am holding the shares for."

** Stock currently yields 4.5 pct, with StarMine SmartEstimate forecasting dividend growth to be 8.2 pct in FY 2015.

** Rio Tinto top riser on FTSE 100 today, closing up 1.6 pct. (1 US dollar = 0.6109 British pound) (RM (LSE: RM.L - news) : alasdair.pal.thomsonreuters.com@reuters.net)