Big gains for BHP shares in April, but is the best still to come?

Shares in BHP Group Ltd (ASX: BHP) are reminding investors why this mining giant rarely stays quiet for long.

After a choppy start to the year, BHP has surged back into form. BHP shares are up around 18% in 2026 so far, including a solid 7% gain in April alone.

That builds on an impressive 41% rise over the past 12 months. For context, the S&P/ASX 200 Index (ASX: XJO) has climbed just 7% over the same period.

So, after a strong run, are there more gains ahead?

Strong operations across key commodities

BHP shares’ recent performance isn’t just market momentum, the underlying business is delivering.

Despite ongoing volatility in commodity prices, the company continues to post strong operational results. Its Western Australian iron ore division has achieved record production levels, while copper output remains solid and is expected to land in the upper half of full-year guidance.

That consistency is crucial. When multiple divisions are firing at once, it supports stable earnings and strong cash flow.

There’s also a powerful long-term theme at play. Global demand for resources like copper is expected to rise as economies transition toward cleaner energy. From electric vehicles to renewable power systems, copper plays a central role and BHP is one of the world’s largest producers.

If that demand continues to grow, BHP shares are well positioned to benefit.

Reliable income with a long dividend track record

BHP isn’t just a growth story, it’s also a major income player.

The company has paid dividends for nearly two decades and typically targets a payout ratio of at least 50% of earnings. That means when commodity prices are strong, shareholders directly share in the upside. Dividend yields often fall in the 4% to 6% range and are usually fully franked, making them particularly attractive for Australian investors.

While payouts can fluctuate with earnings cycles, BHP shares have shown it can deliver meaningful income over the long term.

Financial strength and future growth

Another reason investors continue to watch BHP shares is the miner’s strong balance sheet and growth pipeline.

The company has boosted its financial position through asset sales and strategic deals, generating significant cash and maintaining flexibility. That puts it in a strong position to fund new projects while still returning capital to shareholders.

One key project is the Jansen potash development in Canada, with first production expected around mid-2027. This adds exposure to fertilisers, a new commodity stream that could diversify earnings beyond iron ore and copper.

At the same time, BHP remains focused on low-cost operations and disciplined capital allocation, helping protect margins even as industry costs rise.

What do analysts think?

Broker sentiment is mixed. According to TradingView data, 13 out of 21 analysts rate BHP shares as a hold, six have buy or strong buy ratings, and two suggest selling.

The average 12-month price target sits slightly above the current share price of $54.88. The most bullish forecasts point to around 27% upside, while the most bearish suggest a potential 26% downside.

The post Big gains for BHP shares in April, but is the best still to come? appeared first on The Motley Fool Australia.

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Motley Fool contributor Marc Van Dinther has positions in BHP Group. 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.