What’s happening with BHP shares this week?

BHP Group Ltd (ASX: BHP) shares are up 1.4% in morning trade after closing flat at $36.92 per share yesterday.

Shares are currently trading for $37.43.

The S&P/ASX 200 Index (ASX: XJO) mining giant started the week off strongly, gaining 3.2% on Monday. The next two days went the other way, with BHP shares closing down 1.7% on Tuesday and 2.7% on Wednesday.

Here’s what’s been putting the miner in the spotlight this week.

Iron ore dips below US$100 per tonne before bouncing

Monday’s rally came after some hefty falls on the tail end of last week, including a 7.6% drop last Thursday, 1 September. That fall was largely expected though, as BHP shares traded ex-dividend on the day.

The fully franked $2.55 per share dividend will be paid out on 22 September to investors holding BHP shares before the stock traded ex-dividend.

While down 16 cents per share from the whopping final dividend paid out in FY21, the miner was able to reward shareholders with another outsized payout after seeing a 16% bump in underlying earnings before interest, taxes, depreciation, and amortisation (EBITDA). Underlying EBITDA hit a record US$40.6 billion for the financial year.

With that kind of money flowing in, it’s little wonder BHP counts among Australia’s biggest taxpayers.

In FY22, BHP paid a massive $18.5 billion in taxes, royalties and other payments to governments. Including the $39.6 billion in dividends distributed to shareholders, BHP contributed more than $79 billion to the Aussie economy over the 12-month period.

BHP shares were under some pressure this week as iron ore slipped below US$100 per tonne amid concerns of lower demand out of China and a broader slowdown in global economic activity. Iron ore dropped to some US$98 per tonne on Wednesday but has climbed back above US$101 per tonne today.

With heavy exposure to iron ore and copper, the miner’s outlook remains closely tied to the prices of the key industrial metals.

How have BHP shares been tracking?

With iron ore and copper prices coming off the boil, the BHP share price has dropped 11% this year. That compares to a 10% year-to-date loss posted by the ASX 200.

The post What’s happening with BHP shares this week? appeared first on The Motley Fool Australia.

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More reading

• Do BHP shares give investors exposure to lithium?
• Why are ASX 200 mining shares getting blasted on Wednesday?
• Own BHP shares? Here’s how much the ASX 200 giant added to the Aussie economy in FY22
• What are brokers saying about the BHP share price?
• What’s the outlook for the BHP share price in September?

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 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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