Own BHP shares? Here’s how much the ASX 200 giant added to the Aussie economy in FY22

The financial year 2022 (FY22) was a good year for those invested in BHP Group Ltd (ASX: BHP) shares.

The S&P/ASX 200 Index (ASX: XJO) materials monolith delivered record free cash flow and offered investors $4.63 per share of dividends for the 12 months ended 30 June 2022.

But it wasn’t just the company’s shareholders that benefited from the company’s strong performance.

It added tens of billions of dollars to the Australian economy in FY22.

Let’s take a closer look at the economic value the ‘Big Australian’ brought to the nation last fiscal year.

BHP contributes $79.3b to the Aussie economy

The BHP share price outperformed the ASX 200 last financial year, falling just 3.9% over the period compared to the index’s 10% tumble. Factoring in the company’s dividends, investors boasted a $2.94 per share return over the 12 months ended June.

But the resources giant brought a far bigger benefit to the broader economy – one to the tune of $79.3 billion.

That’s right, between taxes, wages, social investments, and other payments, the company contributed $79.3 billion to the Australian economy in FY22. Let’s break that down.

BHP paid $18.5 billion of taxes, royalties, and other payments to governments last fiscal year at an adjusted effective tax rate of 42.7%, including royalties.

According to BHP’s latest Economic Contribution Report, that makes it one of the nation’s largest corporate taxpayers.

The company expects to account for around 10% of all Australian company tax paid last financial year. Meanwhile, BHP-operated projects appear to have contributed 9% and 13% of all revenue, excluding grants, in Queensland and Western Australia, respectively.

It also spent $16.5 billion with suppliers and paid out $4.6 billion in employee wages in financial year 2022. BHP has nearly 50,000 employees and contractors in Australia.

Another $106 million was put into the company’s social investments.

Finally, it counted the $39.6 billion worth of dividends offered to shareholders and investors as another economic benefit.

Its latest annual economic contribution adds to the company’s impressive decade-long tally. BHP has paid around $90.1 billion in taxes, royalties, and other payments to Australian governments over the last 10 years.

BHP share price snapshot

FY22 saw a strong performance from the BHP share price, but its fortunes have since changed.

The iron ore giant’s stock has fallen 12% since the start of 2022. It’s also currently 11% lower than it was this time last year.

For comparison, the ASX 200 has dumped 10% year to date and 9% over the last 12 months.

The post Own BHP shares? Here’s how much the ASX 200 giant added to the Aussie economy in FY22 appeared first on The Motley Fool Australia.

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Motley Fool contributor Brooke Cooper 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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