BHP Group vs Rio Tinto shares: Which is better for passive income investors today?

If you’re searching for steady dividends and long-term portfolio strength, two giants often come into focus: BHP Group Ltd (ASX: BHP) and Rio Tinto Ltd (ASX: RIO). Both are titans in global mining with reputations for pumping out franked cashflows to shareholders, and their scale makes them regulars in most Aussie blue-chip portfolios. But when it comes to passive income—reliable, chunky dividend streams—how do the shares stack up for investors today? Here’s my breakdown comparing BHP Group vs Rio Tinto shares, with a focus on the numbers that matter most for income seekers.

The case for BHP Group

BHP Group is a world-spanning mining powerhouse, headquartered in Melbourne and known for steelmaking ingredients like iron ore and copper, as well as coal, nickel, and potash. Following a restructure in 2022, it now sports a primary ASX listing, keeping things simpler for local shareholders. BHP’s earnings and share price can swing with commodity cycles, but it’s famed for its size, diversification, and disciplined capital returns.

A few key takeaways:

• Market cap: At $310.39 billion, BHP dwarfs most local peers and brings both scale and global reach.
• Dividend yield: Currently 3.96%, and crucially, with full 100% franking—the kind of income profile many Australian retirees crave.
• Dividend consistency: BHP’s dividend history shows regular twice-yearly payments, typically fully franked, with occasional special dividends sprinkled in.
• YTD return: The shares have surged 39.5% year to date, indicating strong momentum, likely helped by resource price moves.

According to its company profile, BHP boasts a formidable global footprint with operations reaching from Australia to South America and across various high-demand commodities.

The case for Rio Tinto

Rio Tinto is another Australian mining icon, originally founded in 1873 and now one of the largest metals and mining corporations worldwide. Its core businesses are iron ore, aluminium and lithium, and copper—products right at the heart of global electrification and decarbonisation trends. Like BHP, it benefits from scale and commodity diversification.

Here’s what stands out:

• Market cap: Rio Tinto’s value sits at $62.28 billion—substantial, though well below BHP’s heft.
• Dividend yield: Also at 3.96%, and like BHP, fully franked, which is a major plus for Aussie income investors.
• Dividend per share: $6.63, higher than BHP’s $2.42 per share (though both have different share prices and outstanding shares, so yield is what counts).
• Earnings per share: At $7.382, Rio has a higher reported EPS than BHP, reflecting mining cycles and possibly a leaner capital base.
• YTD return: Shares are up 18.6% in the year to date—a strong but more modest lift compared to BHP.

Rio Tinto’s latest business description highlights a focus on growth areas like lithium and copper, putting it front and centre for big trends like electric vehicles, even as iron ore remains its engine room.

Valuation comparison

For passive income investors, yield and valuation are top-of-mind. Let’s look at direct fundamentals:

Metric	BHP Group	Rio Tinto
Market Cap	$310.39 billion	$62.28 billion
P/E Ratio	22.40	16.08
Dividend Yield	3.96% (100% franked)	3.96% (100% franked)
Earnings per Share	1.932	7.382
Dividend per Share	2.42	6.63
Year To Date Return	39.5%	18.6%

A few nuances: Rio Tinto’s lower P/E ratio could suggest it’s trading on more cautious earnings expectations, relative to BHP. Both offer identical dividend yields (and franking), but Rio’s higher dividend per share simply reflects its higher share price, not greater yield.

Note: BHP’s reported P/E ratio and EPS combination suggests its P/E is calculated using a different earnings measure than the simple EPS figure, which is why they may appear inconsistent. The same logic applies to Rio Tinto.

Recent share price performance

Comparing the past month (21 August to 18 September 2026):

• BHP Group: Rose from $65.16 (21 Aug) to $61.05 (18 Sep), a decline of about 6.3% over the period, despite a strong YTD gain of 39.5%.
• Rio Tinto: Rose from $175.38 (21 Aug) to $167.49 (18 Sep), also down approximately 4.5% over the same period, with a YTD gain of 18.6%.
• Both showed volatility typical of diversified miners, driven by swings in commodity prices and broader market mood.
• These prices are as at September 18, 2026, and may have shifted since.

Which is the better buy?

With income in mind, here’s how I see it: Both BHP Group and Rio Tinto currently offer a healthy 3.96% fully franked dividend yield, which will put a smile on most passive income seekers’ faces. BHP is by far the bigger beast, with a greater global reach and a much fatter market cap, but size alone doesn’t make BHP the better buy for dividend collectors.

The most meaningful real difference right now is in valuation and share price performance. BHP’s shares have smashed out a bigger YTD gain (39.5% versus Rio’s 18.6%), suggesting a stronger run of late and perhaps higher investor confidence. But that means BHP now trades on a higher P/E (22.4 vs. 16.08), so Rio looks the more “value-priced” choice for those worried about buying in at a peak.

Each company has a well-established record of fully franked dividends and a diversified mining footprint. In this context, with yields identical and both offering franking, I’d lean toward Rio Tinto as my passive income pick today: it’s trading on a lower price-to-earnings multiple, offers the same headline yield, and has a strong track record. If BHP’s valuation pulled back or its dividend yield moved ahead, I’d reconsider—but for now, Rio’s combination of income and sensible valuation wins the day for me.

The post BHP Group vs Rio Tinto shares: Which pays better dividends? appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial draft. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

If you’d invested $10,000 in Air New Zealand Ltd (ASX: AIZ) and Qantas Airways Ltd (ASX: QAN) shares three years ago, which investment would have returned more?

And would either of the ASX travel stocks have beaten the 23.5% gains delivered by the S&P/ASX 200 Index (ASX: XJO) since 22 September 2023 as of Monday afternoon trade?

I’m glad you asked!

Buying $10,000 worth of Qantas shares

Three years ago, you could have bought Qantas shares for $5.31 apiece.

So, for $10,000, you could have picked up 1,883 shares in the ASX 200 airline stock.

On Monday, shares were changing hands for $8.80 each.

Meaning the 1,883 shares you bought on 22 September 2023 are worth $16,570 today.

But wait. There’s more!

As you may recall, Qantas suspended its dividend payouts in 2020 after the global pandemic slammed the door on air travel and saw Qantas’ profits dry up. However, as COVID came under control and air travel lifted off again, Qantas recommenced its twice-yearly dividend payments, starting in April 2025.

If you’d owned Qantas shares for the last three years, you would have received (or shortly will) the past four dividend payments, totalling 92.4 cents a share.

If we add that back into Monday’s share price, then the accumulated value of the Qantas shares you bought three years ago is now worth $18,310. Or a gain of more than 83%, with some tax benefits from those franking credits.

So, we know that Qantas flew ahead of the ASX 200 over the last 36 months. But how about Air New Zealand stock?

How have Air New Zealand shares fared over three years?

Air New Zealand has had a more difficult time of it since 2023.

Three years ago, you could have bought shares in the Kiwi airline for 68 cents apiece. So, your $10,000 investment would have netted you 14,705 Air New Zealand shares.

On Monday, shares were swapping hands for 33 cents each.

Meaning the 14,705 shares you bought for $10,000 are worth $4,853 today.

Now Air New Zealand also suspended its dividend payments in 2020, resuming them in 2023.

If you’d owned the shares for the last three years, you would have received the past four unfranked dividend payments, totalling 4.7 cents a share.

Adding that back to the recent share price, the accumulated value of the Air New Zealand shares purchased on 22 September 2023 for $10,000 is now $5,544. Or a loss of 44.6%.

Which makes Qantas shares the clear winner in the three-year returns delivered from the two ASX airline stocks.

The post $10,000 invested in Air New Zealand and Qantas shares 3 years ago is now worth… appeared first on The Motley Fool Australia.

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• Looking to bank the final Qantas dividend? You’d better hurry!
• How many Qantas shares do I need to buy for $5,000 of passive income in FY27?

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.

While many international technology companies have enjoyed big gains in 2026 on the back of the AI buildout, ASX technology shares have struggled. 

Year-to-date, the S&P ASX All Technology Index (ASX: XTX) has fallen almost 20%. 

There have been a couple major headwinds that have put pressure on the sector. 

Higher interest rates and bond yields have impacted sentiment on future growth, while concerns about AI disrupting traditional software business models have also hit valuations. 

The sell-off has been amplified because many Australian tech stocks entered 2026 on relatively high valuations, so even companies reporting solid earnings growth have experienced sharp share-price declines.

However these factors have now created an enticing value opportunity for several ASX technology shares. 

Here are three worth considering. 

WiseTech Global Ltd (ASX: WTC)

WiseTech shares are currently trading near 52-week lows at around $31 per share. 

The company provides logistics software that aims to improve the world’s supply chains. WiseTech’s software solutions, including its flagship CargoWise One solution, are now used by the top 25 global freight forwarders, including Toll and DHL.

The share price is down a significant 68% in the last 12 months. 

However, there is reason to be optimistic. 

The bull case for a WiseTech bounceback is that the market may be underestimating the durability and profitability of CargoWise. 

Morgans currently has a price target of $62.50. 

That would be a 100% rise from current levels for the ASX technology stock. 

Xero Ltd (ASX: XRO)

Xero is another ASX technology stock that may have been oversold.

It offers cloud-based, accounting software for small to medium businesses. It is a subscription-based service offering monthly plans at various price points.

After being hit hard by AI replacement fears, it now sits at around $60 per share, down 60% from a year ago. 

Brokers targets are hovering around an average price of $111 per share. 

If this ASX technology stock were to reach this figure, it would be a rise of 85%. 

Betashares S&P ASX Australian Technology ETF (ASX: ATEC)

Another option for investors aiming to buy low on the Australian technology sector is this ASX ETF. 

It has fallen by 36% in the last 12 months.

The ETF provides exposure to leading ASX-listed companies across tech-related market segments such as information technology, consumer electronics, online retail, and medical technology.

It offers a more diversified option for investors looking to buy low, without having to pick individual bounce-back candidates. 

The post Do these ASX technology shares have too much upside to ignore? appeared first on The Motley Fool Australia.

More reading

• Xero shares crash to a 7-year low after a brutal sell-off
• Why brokers think Xero shares could surge 130% from here
• 3 ASX 200 shares I’d buy and hold for a decade
• 7 ASX 200 shares with reaffirmed buy ratings this week
• Downgrade alert! 5 ASX 200 shares downgraded by experts this week

Motley Fool contributor Aaron Bell has positions in WiseTech Global. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended WiseTech Global and Xero. The Motley Fool Australia has positions in and has recommended WiseTech Global and Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.