Rio Tinto will pay its lowest dividend in seven years and cut costs at its Australian iron ore division after full-year profits fell by 8 per cent on the back of higher production costs and lower prices for the commodity.

Rio shareholders will receive a $US2.25 ($3.55) per share final dividend on April 17, after the miner posted a weaker-than-expected $US10.86 billion underlying profit for 2024.