The trimmed-down BHP dividend will be paid today. What's next?

The Big Australia will be rewarding its shareholders with US$4.6 billion today.

| More on:
CSR share price rising asx share price represented my man in hard hat giving thumbs up

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

It's a good day to be an owner of BHP Group Ltd (ASX: BHP) shares.

That's because today is the day that the BHP dividend is being paid to eligible shareholders.

The BHP dividend

Last month, the Big Australian released its half-year results and, as was widely expected, posted a decline in revenue.

For the six months ended 31 December, BHP reported a 16% reduction in revenue to US$25,713 million. This reflects lower average realised prices for iron ore, copper, and hard coking coal, which was partially offset by higher prices for weak coking coal, thermal coal, and nickel.

It was a similar story for its earnings, with BHP posting a 28% decline in underlying EBITDA to US$13,230 million. This was driven by a combination of weaker commodity prices and inflationary pressures.

In light of this profit decline, the BHP board unsurprisingly elected to cut its interim dividend.

BHP declared an interim dividend of 90 US cents per share, which was down from US$1.50 per share a year earlier. Nevertheless, this still equates to a massive return of US$4.6 billion and is the equivalent to a 69% payout ratio.

Eligible shareholders can now look forward to receiving BHP's interim dividend, which equates to A$1.36 in local currency, in their nominated bank accounts today.

What's next for its dividends?

Thanks to recent strength in iron ore prices, Goldman Sachs is expecting the BHP final dividend to be larger.

It has pencilled in a fully franked final dividend of US$1.21 per share. This brings its full-year dividend to US$2.11 per share.

This equates to A$3.16 in local currency and is the equivalent of a generous fully franked 7% yield based on the current BHP share price of $45.00.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Materials Shares

A woman jumps for joy with a rocket drawn on the wall behind her.
Materials Shares

Why is this ASX 300 battery tech stock jumping 11% today?

Another agreement and big plans are getting investors excited on Monday.

Read more »

two men in hard hats and high visibility jackets look together at a laptop screen that one of the men in holding at a mine site.
Resources Shares

'I hate what I have done': Mineral Resources share price down as Ellison laments actions

Managing Director Chris Ellison says he deeply regrets the impact of his 'error of judgement'.

Read more »

A bearded man holds both arms up diagonally and points with his index fingers to the sky with a thrilled look on his face over these rising Tassal share price
Materials Shares

Why is this ASX lithium stock jumping to a 52-week high today?

This lithium stock is smashing the market this year despite all the doom and gloom in the industry.

Read more »

Projection of two hands being shaken on a deal.
Materials Shares

Sayona Mining shares sink 13% on Piedmont Lithium merger news and capital raise

This merger will create the largest lithium producer in North America.

Read more »

Miner looking at a tablet.
Materials Shares

Down 28% in 2024, why this ASX 200 lithium stock could now be 'deeply undervalued'

The ASX 200 lithium stock has drawn plenty of investor attention over the past month.

Read more »

Image from either construction, mining or the oil industry of a friendly worker.
Materials Shares

Buy BHP shares for a 20%+ return

Goldman Sachs expects big total returns from this mining giant.

Read more »

Miner looking at a tablet.
Materials Shares

Here's why ASX uranium shares are ripping higher today

Uranium shares are smashing the markets today.

Read more »

A female broker in a red jacket whispers in the ear of a man who has a surprised look on his face as she explains which two ASX 200 shares should do well in today's volatile climate
Materials Shares

2 ASX 200 lithium stocks to buy for big returns

Which stocks are analysts tipping as buys right now? Let's find out.

Read more »