How big will the BHP dividend be in 2023?

One of the most popular options for income investors on the Australian share market is the BHP Group Ltd (ASX: BHP) dividend.

And it isn’t hard to see why. The mining giant has been rewarding its shareholders handsomely with big dividend payments in recent years.

This continued in FY 2022, with BHP declaring a fully franked full year dividend of US$3.25 (A$4.75) per share. Based on the latest BHP share price of $39.18, this equates to a very generous 12% dividend yield.

In light of this, investors may be wondering what is next for the BHP dividend. Let’s take a look at what one broker is expecting from the Big Australian.

How big will the BHP dividend be in FY 2023?

According to a recent note out of Morgans, its analysts are expecting the company’s dividend to be trimmed a touch in FY 2023. The broker is currently forecasting a US$2.84 (A$4.15) per share fully franked dividend over the next 12 months.

However, this still equates to a double-digit yield of approximately 10.5% for investors, which is among the best you’ll find on the local share market.

In addition, the broker sees plenty of upside potential for the BHP share price. It currently has an add rating and $48.00 price target on the company’s shares.

The company also made another appearance on Morgans’ best ideas list for September. It commented:

We view BHP as relatively low risk given its superior diversification relative to its major global mining peers. The spread of BHP’s operations also supplies some defence against direct COVID-19 impact on earnings contributors. While there are more leveraged plays sensitive to a global recovery scenario, we see BHP as holding an attractive combination of upside sensitivity, balance sheet strength and resilient dividend profile.

The post How big will the BHP dividend be in 2023? appeared first on The Motley Fool Australia.

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