BHP Group
Website:
BHP Group
Index:
Main Market
EPIC: BHP
Supersector:
Basic Resources
Sector:
Mining
Subsector:
General Mining
Market Cap:
£140.79B
Payout Frequency: Semi-Annual
BHP Group Dividend Analysis and Summary
Dividend terms (LSE register)
- Type: Interim dividend
- Amount: US$0.73 per share (fully franked)
- Payout ratio: ~60% of underlying attributable profit
- Ex-dividend date (LSE/ASX): 05/03/2026
- Record date: 06/03/2026
- Payment date: 26/03/2026
- Currency: GBP cash amount to be announced on 09/03/2026 (AUD/GBP/NZD conversions then)
- Dividend Reinvestment Plan (DRP): Available; election deadline 09/03/2026 (5:00pm AEDT); allocation by 13/04/2026
- Other exchanges: JSE ex-date 04 Mar 2026; NYSE ex-date 06 Mar 2026
Context and coverage
- Interim distribution totals US$3.7bn; prior interim was US$0.50 (HY25), implying a +46% year-on-year increase per share.
- Underlying EBITDA: US$15.5bn (+25%); underlying EBITDA margin 58%.
- Operating cash flow: US$9.4bn; Free cash flow: US$2.9bn after US$5.3bn capex.
- Net debt: US$14.7bn (within the US$10–20bn target range).
- Liquidity events: announced US$4.3bn Antamina silver stream upfront plus ~US$2bn from WAIO power agreement expected to complete in H2 FY26; potential to unlock up to US$10bn overall.
Assessment: sustainability and growth
- Affordability/coverage: The interim dividend (~US$3.7bn) is covered by strong operating cash flow (US$9.4bn), though free cash flow (US$2.9bn) is lower after elevated capex. Near-term cash inflows from the streaming and infrastructure agreements bolster capacity to fund both growth and dividends without breaching the net debt range.
- Policy signalling: A 60% payout ratio, above BHP’s through-cycle minimums historically, reflects confidence in the outlook and earnings mix (Copper now 51% of group EBITDA). Variable payout provides flexibility if markets soften.
- Earnings quality: Mix is improving toward low-cost copper/iron ore with segment margins of 66% (Copper) and 62% (Iron Ore). This supports medium-term dividend resilience, albeit still commodity-price sensitive.
- Growth vs. returns: Capex guidance ~US$11bn in FY26–FY27 and the US$8.4bn Jansen Stage 1 budget increase are sizable uses of cash. However, disciplined balance sheet targets and monetisations (streaming/partnerships) help preserve headroom for distributions.
- Trajectory: The interim step-up (US$0.73 vs US$0.50) points to growth aligned with stronger copper pricing and volumes. Future progression will likely track underlying profit under the payout framework rather than target a fixed dividend per share.
Structural or capital allocation developments relevant to dividends
- Streaming and infrastructure deals: Antamina silver stream (US$4.3bn upfront) and WAIO power agreement (~US$2bn) enhance near-term financial flexibility; note they trade some future by-product revenue for upfront cash.
- Major project: Jansen Stage 1 capex increased to US$8.4bn; Stage 2 capex under review. Elevated potash spend could compete with cash returns in downcycles.
- Portfolio actions: Carajás divestment expected to close H1 CY26; continued active portfolio management flagged (potentially up to US$10bn of value to unlock).
- DRP operating: Availability reduces cash outflow and can slightly dilute per-share metrics if taken up widely.
Risks and flags to dividend stability
- Commodity price volatility: Dividends are explicitly linked to earnings; copper/iron ore price declines would reduce payouts.
- Capex and execution risk: Sustained high capex (~US$11bn p.a. near term) and the Jansen cost increase raise competition for cash; schedule/cost slippage would pressure free cash flow.
- Samarco obligations: Cash outflows of ~US$2.2bn in FY26e and ~US$0.6bn in FY27e are a non-trivial call on cash.
- Cost/royalty inflation and taxes: Adjusted effective tax rate of ~43% including royalties; regulatory/tax changes (e.g., QLD coal royalties, Chile royalty regime) could weigh on future cash generation.
- Streaming trade-offs: While positive for near-term liquidity, future by-product revenue (silver) is partially foregone, modestly reducing longer-term cash generation from those assets.
Read more
BHP Group Annual Dividend Yield - 3.09%
Dividends Used in Calculation:
| Ex-Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 06/03/2025 |
27/03/2025 |
Interim |
50.00¢ |
USX |
| 04/09/2025 |
25/09/2025 |
Final |
60.00¢ |
USX |
Total (Annual Dividends Per Share):
82.10p
(Using exchange rate on 11/03/2026
$ = £0.74638)
Dividend Yield =
Annual Dividends Per Share (82.10p)
÷ Share Price (2661p)
= 3.09%
BHP Group Dividend History
| Ex Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 05/03/2026 |
26/03/2026 |
Interim |
73.00¢ |
USX |
| 04/09/2025 |
25/09/2025 |
Final |
60.00¢ |
USX |
| 06/03/2025 |
27/03/2025 |
Interim |
50.00¢ |
USX |
| 12/09/2024 |
03/10/2024 |
Final |
74.00¢ |
USX |
| 07/03/2024 |
28/03/2024 |
Interim |
72.00¢ |
USX |
| 07/09/2023 |
28/09/2023 |
Final |
80.00¢ |
USX |
| 09/03/2023 |
30/03/2023 |
Interim |
90.00¢ |
USX |
| 01/09/2022 |
22/09/2022 |
Final |
175.00¢ |
USX |
| 24/02/2022 |
28/03/2022 |
Interim |
150.00¢ |
USX |
| 02/09/2021 |
21/09/2021 |
Final |
200.00¢ |
USX |
| 04/03/2021 |
23/03/2021 |
Interim |
101.00¢ |
USX |
| 03/09/2020 |
22/09/2020 |
Final |
55.00¢ |
USX |
| 05/03/2020 |
24/03/2020 |
Interim |
65.00¢ |
USX |
| 05/09/2019 |
25/09/2019 |
Final |
78.00¢ |
USX |
| 07/03/2019 |
26/03/2019 |
Interim |
55.00¢ |
USX |
| 10/01/2019 |
30/01/2019 |
Special |
102.00¢ |
USX |
| 06/09/2018 |
25/09/2018 |
Final |
63.00¢ |
USX |
| 08/03/2018 |
27/03/2018 |
Interim |
55.00¢ |
USX |
| 07/09/2017 |
26/09/2017 |
Final |
43.00¢ |
USX |
| 09/03/2017 |
28/03/2017 |
Interim |
40.00¢ |
USX |
| 01/09/2016 |
20/09/2016 |
Final |
14.00¢ |
USX |
| 10/03/2016 |
31/03/2016 |
Interim |
16.00¢ |
USX |
| 10/09/2015 |
29/09/2015 |
Final |
62.00¢ |
USX |
| 12/03/2015 |
31/03/2015 |
Interim |
62.00¢ |
USX |
| 03/09/2014 |
23/09/2014 |
Final |
62.00¢ |
USX |
| 05/03/2014 |
26/03/2014 |
Interim |
59.00¢ |
USX |
| Year |
Interim |
Final |
Special |
Currency |
Total |
Change |
| 2024 |
72.000 |
74.000 |
|
USX |
146.000 |
-14.110 |
| 2023 |
90.000 |
80.000 |
|
USX |
170.000 |
-47.690 |
| 2022 |
150.000 |
175.000 |
|
USX |
325.000 |
7.970 |
| 2021 |
101.000 |
200.000 |
|
USX |
301.000 |
150.830 |
| 2020 |
65.000 |
55.000 |
|
USX |
120.000 |
-48.930 |
| 2019 |
55.000 |
78.000 |
102.000 |
USX |
235.000 |
99.150 |
| 2018 |
55.000 |
63.000 |
|
USX |
118.000 |
42.160 |
| 2017 |
40.000 |
43.000 |
|
USX |
83.000 |
176.660 |
| 2016 |
16.000 |
14.000 |
|
USX |
30.000 |
-75.800 |
| 2015 |
62.000 |
62.000 |
|
USX |
124.000 |
2.470 |
| 2014 |
59.000 |
62.000 |
|
USX |
121.000 |
|
BHP Group Dividend Calculator
BHP Group Dividend Growth
| Dividend Growth (1Y) |
4.28%
|
| Dividend CAGR (5Y) |
-2.84%
|
| Years of Growth |
–
|
| Payout Ratio |
54.85%
|
| Buyback Yield |
-0.13%
|
| Shareholder Yield |
3.54%
|
| P/E Ratio (TTM) | 18.5 |
|---|
| Forward P/E | 14.7 |
|---|
| P/FCF | 19.15 |
|---|
| Earnings Yield | 5.41% |
|---|
| FCF Yield | 5.22% |
|---|
| ROE | 24.71% |
|---|
| ROCE | 21.14% |
|---|
| Profit Margin | 18.97% |
|---|
| Operating Margin | 39.26% |
|---|
| Gross Margin | 83.09% |
|---|