Up 49% in a year, should you buy BHP shares for their ‘stability and income’?

BHP Group Ltd (ASX: BHP) shares are edging higher today.

Shares in the S&P/ASX 200 Index (ASX: XJO) mining giant closed on Friday trading for $56.10. During the Monday lunch hour, shares are swapping hands for $56.15 apiece, up 0.1%.

For some context, the ASX 200 is down 0.3% at this same time.

Taking a step back, BHP shares have gained 49.0% over the past 12 months, smashing the 9.6% one-year gains posted by the benchmark index.

And that’s not including the two fully franked dividends the miner paid to eligible stockholders over this period. BHP stock trades on a 3.5% fully franked trailing dividend yield.

Which brings us back to our headline question.

BHP shares: Buy, hold or sell?

Morgans’ Damien Nguyen recently analysed the outlook for the Aussie mining giant (courtesy of The Bull).

“BHP provides diversified exposure to iron ore, copper and future-facing commodities, backed by a strong balance sheet and disciplined capital management,” Nguyen said.

The ASX 200 miner gets the bulk of its earnings from digging up and selling iron ore and copper.

“Copper offers long term appeal through electrification, while iron ore continues to drive near term earnings,” Nguyen noted. “However, results remain sensitive to global growth and Chinese demand.”

Summarising his recommendation on BHP shares, he pointed to the miner’s passive income and relative stability as reasons to hold the stock.

According to Nguyen:

With commodity prices reflecting mixed economic signals, BHP’s valuation looks fair rather than compelling. BHP suits investors seeking stability and income, but upside appears balanced by cyclical risk, supporting a hold rating.

What’s the latest from the ASX 200 mining stock?

BHP released a nine-month performance update last week, on 22 April.

BHP shares closed up 1.2% on the day with the miner reporting a 2% year-on-year increase in iron ore production to 197 million tonnes. BHP achieved record production at the its integrated Western Australia Iron Ore (WAIO) systems.

Although the miner’s copper production of 1.46 million tonnes was down 3% from the same nine-month period in FY 2025, BHP reported a 31% year on year increase in its average realised copper price to US$5.47 per pound.

On the leadership front, the board confirmed that Brandon Craig, current president Americas, will take over as CEO on 1 July, with outgoing CEO Mike Henry stepping down after six and a half years in the top role.

Henry said:

From 1 July 2026, Brandon Craig will assume the role of CEO, taking BHP forward from a strong position with reliable operations and a significant pipeline of copper and potash growth projects, to deliver long term value through the cycle.

The post Up 49% in a year, should you buy BHP shares for their ‘stability and income’? appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben 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 recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.