When Will BHP Release its Next Dividend?

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When Will BHP Release its Next Dividend?

Mining giant BHP, one of the world's largest diversified natural resources companies, typically pays out dividends twice a year to its shareholders. The exact timing and amount of these payouts can vary depending on various factors, such as the company's financial performance, strategic priorities, and market conditions. Therefore, investors who are interested in BHP's dividends may wonder when the next one will be released and how they can prepare for it.

Dividend History and Policy

Before we look at BHP's current dividend situation, let's review its recent dividend history and policy. According to BHP's website, the company has paid out dividends since 1889, and has a strong track record of rewarding its shareholders through both cash dividends and share buybacks. BHP'sdividend policyis to maintain a payout ratio of at least 50% of underlying earnings, and to review this ratio annually. The company aims to provide a sustainable and growing dividend over time, while balancing this with its other capital allocation priorities, such as investing in growth projects, reducing debt, and returning excess cash to shareholders.

Recent Developments and Outlook

In August 2021, BHP announced its full-year results for the fiscal year 2020-2021, which showed a significant increase in profits and cash flows compared to the previous year. BHP's underlying earnings before interest, tax, depreciation, and amortization (EBITDA) rose by 42% to $37.4 billion, while its net operating cash flow surged by 69% to $24.6 billion. BHP also declared a final dividend of $2.00 per share, which brought its total dividend for the year to $3.01 per share, up from $1.20 per share in the previous year. This represented a payout ratio of 79% of underlying earnings, which was higher than BHP's target range, but reflected the strong performance and cash generation of the company.

Looking ahead, BHP's management has indicated that it intends to maintain a payout ratio of at least 50% of underlying earnings in the future, subject to market conditions and capital requirements. BHP is also planning to spin off its oil and gas assets into a separate company, which could affect its dividend policy and capital structure. However, BHP has stated that it remains committed to paying sustainable and growing dividends, and that it aims to have a strong investment-grade credit rating and a flexible balance sheet.

Investment Implications and Strategies

For investors who are considering buying or holding BHP's stock for its dividend, there are several factors to keep in mind. First, BHP's dividend yield, which measures the annual dividend per share divided by the stock price, is currently around 4%, based on the latest dividend of $2.00 per share and the stock price of around $50 per share. This is above the average yield of the S&P 500 index, which is around 1.3%, but lower than some other mining companies such as Rio Tinto and Glencore, which have yields of around 6% and 7%, respectively.

Second, BHP's dividend policy and payout ratio may fluctuate depending on its earnings, cash flow, and investment opportunities. Therefore, investors should not rely solely on BHP's dividend for their income needs, but should also consider other sources of income and growth. Moreover, investors should diversify their portfolio across different sectors, regions, and asset classes, in order to reduce their risk and increase their potential returns.

Third, BHP's stock price may be influenced by various factors, such as commodity prices, global demand, geopolitical tensions, and environmental regulations. Therefore, investors should monitor these factors and adjust theirinvestment strategiesaccordingly, such as by using stop-loss orders, limit orders, or hedging instruments. Additionally, investors should seek professional advice from licensed financial advisors or brokers, who can provide personalized recommendations based on their risk tolerance, investment goals, and market outlook.

Conclusion

In conclusion, BHP is a leadingmining companythat has a long history of paying dividends to its shareholders. While the timing and amount of BHP's next dividend may depend on various factors, such as the company's financial performance and strategic priorities, BHP's management has indicated that it aims to maintain a payout ratio of at least 50% of underlying earnings in the future. Investors who are interested in BHP's dividend should consider the company's dividend yield, policy, and outlook, as well as their own investment objectives and strategies. By doing so, investors can make informed decisions and potentially benefit from BHP's dividend and growth potential.