BHP (ASX:BHP) share price flat despite rebound in iron ore prices

BHP shares are struggling to catch a bid despite higher iron ore prices this week.
The post BHP (ASX:BHP) share price flat despite rebound in iron ore prices appeared first on The Motley Fool Australia. –

The BHP Group Ltd (ASX: BHP) share price has largely been range bound between $44-45 following a devastating 15% selloff last week.

Shares in the iron ore major have struggled to find any momentum despite an improvement in iron ore prices.

According to Fastmarkets MB, seaborne iron ore prices were up on Thursday 26 August, amid an uptrend in Chinese futures. Benchmark iron ore prices increased US$4.26 per tonne to US$152.92/tonne.

Iron ore price showing signs of life

Iron ore prices have tipped higher this week following signs of resilient demand and accommodative policies from China.

According to Bloomberg, China’s central bank chief vowed to “stabilise the supply of credit and boost the amount of money supporting smaller businesses and the real economy, after both credit and economic growth slowed in July”.

This statement comes after new credit growth expanded at its slowest pace since February 2020, driven by a slowdown in government stimulus, tighter rules for property development finance and the delta variant taking a hit on the broader economy.

Commodity markets have responded positively to China’s view of increasing the amount of credit and strengthening the growth in total credit.

While an uptick in iron ore prices typically spells good news for the BHP share price, it looks like the damage has already been done. Prices have fallen more than 30% from record peaks in May.

What’s next for the BHP share price?

The BHP share price will go ex-dividend on Thursday 2 September for a final dividend of US$2 per share (~A$2.76).

At today’s prices, the final dividend represents a yield of approximately 6.16%.

Investors should keep an eye out for the BHP share price when it goes ex-dividend, given Rio Tinto Limited (ASX: RIO)’s ex-dividend performance.

The Rio Tinto share price tumbled 6.88% on 12 August from $129.14 to $120.26 after trading ex-dividend.

Its share price decline was greater than the fully franked interim dividend of 760.06 cents per share.

The post BHP (ASX:BHP) share price flat despite rebound in iron ore prices appeared first on The Motley Fool Australia.

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

Before you consider BHP, 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 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 August 16th 2021

More reading

BHP (ASX:BHP) share price lifts despite credit downgrade risk
BHP (ASX:BHP) share price free falls in August, analysts say iron ore pressures will persist
How do BHP (ASX:BHP) earnings compare to Woodside Petroleum’s?
Pilbara Minerals (ASX:PLS) share price bounces back, up 8% on Monday
What’s moving the ASX 200 Index (ASX:XJO) on Monday?

Motley Fool contributor Kerry Sun 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!