The history-making BHP dividend is being paid out today. Here’s the lowdown

Watch out! BHP Group Ltd (ASX: BHP) is paying out the ASX’s biggest dividend today, spending a mammoth $12.5 billion in cash.

This means that BHP has taken the mantle of paying out the biggest amount in ASX corporate history.

With the ASX closed due to the National Day of Mourning for the Queen of England, BHP shares closed at $37.96 yesterday.

For context, the S&P/ASX 200 Index (ASX: XJO) also finished lower on Wednesday, down 1.56%.

BHP pays out history-making dividend

BHP reported record numbers across key metrics in its full-year results for the 2022 financial year.

In summary, underlying EBITDA from continuing operations jumped 16% to a record US$40,634 million driven by BHP’s coal operations.

Subsequently, this flowed through to a stronger free cash flow of US$29,285 million, up 13%.

Underlying attributable profit grew by 26% to US$21,319 million.

This led the board to declare a fully franked dividend of US$1.75 per share to be paid on 22 September (today). This is around A$2.55 per share based on the payment currency equivalent.

For those who elected in the dividend reinvestment plan (DRP), there was no discount rate offered by the company. 

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.

BHP share price summary

Despite tumbling 9% in the past month, the BHP share price has lifted 3% in 2022.

When looking at the last 12 months, its shares have posted a gain of 13%.

BHP has a price-to-earnings (P/E) ratio of 6.35 and commands a market capitalisation of roughly $192.1 billion.

The post The history-making BHP dividend is being paid out today. Here’s the lowdown appeared first on The Motley Fool Australia.

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More reading

• Why is the BHP share price lagging the ASX 200 today?
• This is how I found a 15-bagger ASX share: fund manager
• $18 billion of ASX dividends are being paid out this week. Here’s the lowdown
• Here’s what this top broker is saying about the BHP share price
• Why China’s slowdown isn’t as bad as it looks for ASX 200 mining shares

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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