Everything you need to know about the latest BHP dividend

If you’ve invested in BHP Group Ltd (ASX: BHP) shares, then you might want to read a little further about the company’s latest dividend.

The mining giant dropped its full-year results this morning, and it didn’t disappoint.

BHP achieved double-digit growth across its key financial metrics on the back of a solid underlying and cost performance.

At the time of writing, shares in the world’s largest miner are up 4.59% to $40.70 apiece.

Let’s take a look at the latest dividend from the company.

BHP boosts final FY22 dividend

The BHP board declared a final dividend for FY22 of US$1.75 per share.

This brings the total FY22 dividend to US$3.25 per share, an increase of 8% compared to FY21’s full-year dividend.

The company has a 50% minimum payout policy. The cash dividend announced today is equivalent to a 77% payout ratio.

In total, record dividends of US$36 billion (US$7.11 per share) have been determined for FY22.

The ex-dividend date for the final dividend falls on 1 September, with payment following on 22 September 2022.

What about the FY23 dividend?

While BHP didn’t give any guidance to its dividend for FY23, we take a glimpse at what one broker thinks.

US-based investment firm Goldman Sachs believes the miner will cut its dividend to US$2.64 in FY23.

This will then be followed by US$2.02 in FY24.

Goldman Sachs’ estimates are being driven by the expectation that iron ore prices will decline over the coming years.

This has already been occurring of late, with the steel-making ingredient currently fetching US$109.50 per tonne. That’s a significant drop from when it was going for US$160 per tonne in March this year.

BHP share price snapshot

Over the last 12 months, the BHP share price has sunk by 12%, but is up 10% in 2022.

It’s worth noting the company’s shares touched a year-to-date low of $35.83 on 15 July before sharply rebounding.

Based on today’s price, BHP commands a market capitalisation of $205 billion and has a trailing dividend yield of 11.81%.

The post Everything you need to know about the latest BHP dividend appeared first on The Motley Fool Australia.

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More reading

• BHP share price charges 5% higher on ‘better than expected result’
• BHP share price on watch amid record FY22 profits
• 5 things to watch on the ASX 200 on Tuesday
• 2 ASX 200 dividend shares analysts rate as buys
• Looking to buy BHP shares? Here’s what to watch when the mining giant reports this week

Motley Fool contributor Aaron Teboneras 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.

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