Shares of ASX-listed BHP Group Limited (AU:BHP) offer an attractive dividend yield of 5.25%, surpassing its sector’s average of 1.58%. Notably, it ranks among the top dividend-paying companies in Australia. In terms of capital appreciation outlook, analysts are moderately bullish on BHP stock with an upside potential of around 10%.
Pick the best stocks and maximize your portfolio:
- Discover top-rated stocks from highly ranked analysts with Analyst Top Stocks!
- Easily identify outperforming stocks and invest smarter with Top Smart Score Stocks
BHP is a multinational mining corporation engaged in the production of various commodities such as iron ore, coal, copper, and more.
TipRanks Simplifies Dividend Tracking for Investors
TipRanks provides a range of tools to assist users in finding dividend stocks that meet their specific criteria, simplifying the tracking process. For example, the TipRanks Best Dividend Stocks – Australia compiles a comprehensive list of the leading dividend-paying companies in Australia, along with multiple comparison metrics.
Additionally, TipRanks features a Dividend Calendar that streamlines the process of tracking stocks with upcoming dividend payouts, giving investors the chance to buy shares and qualify for the next distribution.
How Much Is BHP’s Dividend for 2024?
For 2024, BHP paid a final dividend of $0.74 per share in October. Before this, the company issued an interim dividend of $0.72 per share. The total dividend for the year amounted to $1.46 per share, marking the fourth-largest full-year ordinary dividend ever declared. This brings total shareholder cash returns for the year to $7.4 billion, reflecting a payout ratio of 54%.
Although this represents a 14% decrease from the $1.70 per share dividend in FY23, the lower payment is attributed to the risks related to settlements and the need to conserve cash.
Regarding its financial health, BHP’s balance sheet remains strong with strong cash flow generation. In FY24, the company reported an impressive 111% year-over-year jump in its free cash flow to $11.9 billion.
Are BHP Shares a Good Buy?
According to TipRanks ’rating consensus, BHP stock has a Moderate Buy consensus rating based on eight Buys and eight Holds assigned in the last three months. At AU$43.98, the average BHP share price target implies a 9.6% upside potential.
