BHP (ASX:BHP) big dividend payday might even exceed expectations

BHP might be the gift that keeps on giving…
The post BHP (ASX:BHP) big dividend payday might even exceed expectations appeared first on The Motley Fool Australia. –

The BHP Group Ltd (ASX: BHP) share price finished Thursday lower despite Macquarie analysts sharing a bullish word on the mining giant.

At the close, shares in BHP fetched $53.12 apiece, down 1.74%. The miner is set to report its latest results on Tuesday 17 August 2021 (ASX reporting calendar).

Big could get better

While investors weren’t looking too fondly on ASX-listed BHP shares on Thursday, analysts at Macquarie took a different view.

The mining company is already expected to announce its biggest dividend payday. Currently, the consensus is for a smaller payment than Rio Tinto Limited (ASX: RIO), which came in at US$9.1 billion. This follows a stupendous demand for iron ore and copper, pushing prices of the commodities to dizzying heights.  

Macquarie analysts are forecasting a final dividend of US$1.78 per share. This would bring the dividend shower to a total of US$5.3 billion. However, the broker admits the actual dividend could exceed even these lofty estimates.

Further to this, Macquarie analyst Hayden Bairstow said:

Divisionally, iron ore and copper are expected to be divisions to register higher earnings year-on-year driven by buoyant iron ore and copper prices… The upside risk to BHP’s earnings due to buoyant iron-ore prices remains significant despite operational pressures in its Coal and Copper business.

BHP outperforms RIO on the ASX

Firstly, we will need to wait until after BHP reports to establish which of the mining giants dished the best dividends. However, purely on a share price basis, BHP has outperformed its peer on the ASX over the last year.

While Rio Tinto has performed strongly with a 25.5% price appreciation, BHP has surged 33.2%. A big potential share price driver for the latter will be in mind during BHP’s results. This of course is the final investment decision on the Jansen Potash project.

The post BHP (ASX:BHP) big dividend payday might even exceed expectations appeared first on The Motley Fool Australia.

Should you invest $1,000 in BHP Group right now?

Before you consider BHP Group, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and BHP Group wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of May 24th 2021

More reading

Why the BHP (ASX:BHP) share price is up 2.5% and nearing a record high
Why ASX lithium shares are beating the iron ore majors – again

Own BHP (ASX:BHP) shares? Here’s what to look for during reporting season
Fortescue (ASX:FMG) share price under most pressure as iron ore crashes to bear market
BHP (ASX:BHP) share price on watch as copper workers vote to strike

Motley Fool contributor Mitchell Lawler 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 Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!