The BHP Group Ltd (ASX: BHP) share price is down 8.79% year to date but continues to climb higher since its March lows.

BHP shares fell as low as $24.05 on 13 March in the midst of the bear market. However, the company’s share price is back up to $35.50 and is now outperforming the S&P/ASX 200 Index (ASX: XJO) in 2020.

So, is this just a flash in the pan or is the BHP share price back in the buy zone this year?

Why the BHP share price could be a buy

BHP is a diversified miner with strong operations across iron ore, copper, aluminium and diamonds. This means there are a lot of potential earnings streams to help weather the current downturn.

I think we’ll continue to see strong demand for iron ore in 2020. The coronavirus pandemic has sparked what looks to be a global recession with governments across the globe trying to stabilise their economies.

One of the easiest ways to do this is through infrastructure spending. I think we could see governments like China and Australia turn to infrastructure to boost employment and economic output.

That’s good news for the BHP share price and the company’s shareholders. Iron ore is a basic material used for steel production and any infrastructure projects could help support global demand.

What are the downside risks?

Despite some strong tailwinds, there are risks to buying the BHP share price at $35.50.

Geopolitical tensions remain high in 2020. That means we could see further trade wars either between the USA and China or China and Australia.

That’s bad news for major exporters like BHP. The other risk factor is just the uncertainty. No one really knows what the future holds in the coming months, let alone years.

Given the current economic climate, I think it’s quite likely we will continue to see sharp BHP share price movements for at least the next few months. If you’ve got what it takes to ride out this short-term volatility, BHP could still represent solid, long-term buying at current prices.

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Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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Next week the Reserve Bank of Australia will be deciding on the cash rate once again.

According to the latest cash rate futures, at present the market is pricing in a 47% probability of a rate cut at this meeting.

While I’m not convinced rates will go lower from here, I am convinced that they will stay at ultra-low levels for a number of years to come.

In light of this, I continue to see the share market as the best place for investors to turn to for income.

But which shares should you buy? These three top ASX dividends shares are high on my list:

Commonwealth Bank of Australia (ASX: CBA)

If you don’t already have exposure to the big four banks, then I think it would be worth considering Commonwealth Bank. While trading conditions are tough for the banks, I’m optimistic that the worst is largely behind them now. This could make it an opportune time to make a patient investment in Commonwealth Bank’s shares. I expect the bank to cut its dividend to ~$3.70 per share in FY 2021, which implies a forward fully franked 6% yield.

Rio Tinto Limited (ASX: RIO)

I think Rio Tinto could be worth considering. Especially with iron ore prices trading at lofty levels and some tipping prices to go even higher. This should lead to Rio Tinto delivering strong profits for at least the next couple of years. And given the strength of its balance sheet, I expect the majority of its free cash flow to be returned to investors. Last week Morgans suggested that Rio Tinto’s shares offer a fully franked ~9% FY 2021 dividend yield.

Wesfarmers Ltd (ASX: WES)

A final dividend share to consider buying is Wesfarmers. It is the conglomerates behind brands such as Bunnings, Kmart, Target, online retailer Catch, and Officeworks. It also owns a number of businesses in the chemicals and industrials industries. And while its shares may not offer the biggest yield, I believe its businesses leave it well-placed to grow its dividend at a solid rate over the next decade. At present I estimate that its shares offer a forward fully franked ~3.7% dividend yield.

More reading

• ASX 200 rallies hard, no longer in bear territory
• Latest spending data could drive the ASX retail sector higher
• Why ANZ, CBA, NAB, and Westpac shares are storming higher today
• 3 top ASX dividend shares to buy in June
• Leading brokers name 3 ASX 200 shares to sell today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Wesfarmers Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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