Everything you need to know about the BHP dividend

Owners of BHP Group Ltd (ASX: BHP) shares can celebrate because the ASX mining share has risen 3%, and the BHP dividend has been announced.

The company revealed that revenue grew 15% to US$58.8 billion, profit from operations increased 23% to US$23.9 billion, underlying attributable profit grew 30% to US$13.2 billion, and attributable profit rose 9%.  

Profit generation funds the payment of dividends, so the fact that the company reported significant financial progress was a very helpful sign for the company to fund larger payouts.

Let’s look at how big the dividend payout will be.

BHP FY26 dividend

The ASX mining share wants to provide good passive income payments to shareholders.

The BHP board of directors declared an FY26 final dividend of US 99 cents, representing a 65% increase compared to the final dividend from FY25. That brought the full-year dividend to US$1.72, an increase of 56%.

These payouts mean the business is paying a total distribution of US$8.7 billion to owners of BHP shares, representing 66% of underlying attributable profit. BHP aims to provide investors with a minimum dividend payout ratio of 50% of underlying attributable profit for every reporting period.

Investors can utilise the dividend reinvestment plan (DRP) to receive the dividend as new BHP shares rather than cash.

When will the passive income be paid?

I’ll get to the dividend payment date in a moment, but first investors need to know about the ex-dividend date. Investors wanting to receive the payout need to own shares before the ex-dividend date or else they’ll miss out.

For the FY26 final dividend, BHP disclosed that the ex-dividend date is 3 September 2026, which is just over two weeks. That means investors need to own BHP shares by the end of trading on 2 September 2026 if they want to receive the upcoming payout.

After that date, the ASX mining share will pay its FY26 final dividend per share on 23 September 2026. That means investors only need to wait just over a month until the cash can hit their bank account.

If a shareholder wants to participate in the dividend reinvestment plan, they have until Monday, 7 September 2026 at 5pm to make that election.

What is the BHP dividend yield?

At the current BHP share price and exchange rate, the final dividend of US 99 cents is approximately AU$1.39. That’s a dividend yield of 2.2%, excluding franking credits, and 3.1%, including franking credits.

The full-year dividend of US$1.72 translates into approximately A$2.42. That equates to a dividend yield of 3.8%, excluding franking credits, and 5.4%, including franking credits.

That’s not one of the most exciting dividend yields around, so investors may want to also consider other ASX shares that could be attractive for passive dividend income.

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

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Motley Fool contributor Tristan Harrison 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.